Benzinga - by Benzinga Neuro, Benzinga Staff Writer.
Chinese EV maker BYD Co. (OTC:BYDDY) (OTC:BYDDF) is reportedly contemplating the establishment of a new production facility in Mexico, a move that could potentially bolster its presence in the U.S. market.
What Happened: The Mexico City-based head of BYD’s local division, Zhou Zou, disclosed the company’s plans to Nikkei Asia.
The proposed plant in Mexico would serve as an export hub for the U.S. market, Zou explained, without specifying where the factory would be built.
He emphasized the significance of international production for a global brand and highlighted Mexico’s potential as a key market. The automaker will open facilities in Thailand this year and is to build a production base in Hungary within three years.
Why It Matters: The potential establishment of a new plant in Mexico indicates BYD’s strategic focus on expanding its presence in the U.S., a market where it competes with Tesla Inc. (NASDAQ:TSLA).
This development follows BYD’s recent success, with the company overtaking Tesla as the biggest EV seller and expecting a significant increase in its net profit for the financial year 2023.
Tesla has also been making significant moves in Mexico, with plans to construct a new Gigafactory in the country. The Giga Mexico facility is expected to play a crucial role in Tesla’s future production, including making the long-rumored sub-$30,000 vehicle for the American EV giant.
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