BYD Reconsiders Installing Manufacturing Plant in Mexico

ByLilia González

This article by Lilia González originally appeared in the November 12, 2025 edition of El Economista.

China ‘s BYD has revived its intention to install a manufacturing plant in Mexico, as the only vehicle manufacturer that produces the batteries, a project that would eventually be announced before January 2026, stated Julián Villarroel, corporate vice president of BYD.

In addition, the Chinese automaker is lobbying the Mexican government to avoid paying the tariff on electric vehicles, estimated at up to 50% on imports from countries with which there are no trade agreements.

BYD ‘s conviction is that “it’s here to stay in Mexico,” since both our country and Brazil are key markets for continuing the expansion of the corporation that manufactures light and heavy vehicles in Latin America, with its main strength being the manufacture of its own batteries for electromobility.

During the press conference at Expo Transporte 2025, organized by ANPACT, BYD’s vice president of operations confirmed that the interest in having a manufacturing plant in Mexico remains.

“The plan is still in place and BYD will issue an official statement on the matter, which cannot be addressed in this meeting, but there will be a statement. The intention is to stay in Mexico; we came here to be in Mexico, in Latin America. The Mexican market and Brazil are our core business.”

He specified that the announcement could come in a couple of weeks and avoided giving details about the installation of the BYD plant, which is surrounded by rumors that it could be one of those interested in acquiring the Nissan facilities in Cuernavaca or COMPAS in Aguascalientes.

Last Tuesday, El Economista published information that the Morelos government is maintaining efforts to attract new investments and mitigate the economic and labor impact, following the closure of Nissan’s operations in CIVAC.

To that end, Governor Margarita González Saravia confirmed that four automotive assembly companies are interested in setting up shop at the site vacated by the automaker.

So far, MG, Changan, and BYD have confirmed their interest in setting up operations in Mexico, although none have mentioned their interest in acquiring Nissan facilities.

Lithium Batteries, a Key Business

During the launch of last-mile delivery units, BYD ‘s Vice President of Operations emphasized that “we are the only electric vehicle manufacturer that produces the batteries. BYD’s core business isn’t even cars or trucks; it’s batteries. Any other manufacturer here today (at the Expo) will use batteries from a third party. We integrate them into our production chain… everything that moves globally that currently runs on gasoline or diesel will move on batteries, will move electric, and we will move it.”

As the world’s largest manufacturer of lithium batteries, with this integration, and considering that the battery is a very important part of the vehicle’s cost, BYD can offer the “affordable” prices available on the market.

“We will continue in Mexico, we will continue growing in the area of ​​cars, trucks, buses,” Villarroel asserted.

He noted that 700 BYD trucks are already operating in Mexico and that they will close 2025 with the sale of 1,200 units, and next year they will reach the sale of 5,000 units with the cargo vans, their units presented at the Expo.

Regarding the issue of tariffs that the Mexican government intends to impose, he said, the concern of the authorities to impose tariffs on imports from third countries, such as China , is understandable; however, BYD is lobbying the authorities to avoid the tariff on electric vehicles.

He added: “We’re trying to avoid this with electric vehicles because it affects pollution, and they shouldn’t be included in this package. We can’t give further explanations because it’s part of the negotiations, but you can’t tax mobility.”

However, last July, in the face of geopolitical pressures and the tariffs imposed by the United States worldwide, BYD’s executive vice president, Stella Li, stated in Brazil that the company maintains its interest in expansion in America, but has no plans for further investment, thus ruling out the plant in Mexico.

Although the Chinese automaker claims to be growing in the Mexican market, having sold 80,000 units in two years up to August of this year, new vehicle launches continue.