BYD Drops Mexico Plant

This article first appeared in the July 3, 2025 edition of La Jornada, Mexico’s premier leftist daily newspaper.

Chinese electric vehicle manufacturer BYD no longer plans to build a plant in Mexico due to geopolitical and trade tensions, according to statements by the company’s executive vice president, Stella Li, Bloomberg reported.

Mexican President Claudia Sheinbaum, seen with former Goldman Sachs banker & current Canadian Prime Minister Mark Carney, attended the recent G7 but will not be attending the upcoming BRICS meeting in Brazil.

Interviewed in the Brazilian state of Bahia, where BYD opened its first factory outside of Asia, Li noted that the company remains interested in expanding on the continent but has no timeline for making a new investment.

“Geopolitical issues have a major impact on the automotive industry,” he said. “Now everyone is rethinking their strategy in other countries. We want to wait for more clarity before making a decision.” On Wednesday, BYD officially unveiled its first Dolphin Mini produced at its new factory in Camaçari, Bahia.

BYD has invested 5.5 billion Brazilian reals in the complex, which covers 4.6 million square meters, equivalent to the size of 645 soccer fields. Once all construction phases are completed, the project is expected to generate up to 20,000 direct and indirect jobs.

Meanwhile, Tesla’s global sales fell 13.5 percent in the second quarter compared to the same period in 2024, amid growing competition and the end of its owner Elon Musk’s partnership with US President Donald Trump.