BYD (BYDDF (OTC:BYDDF)), China's EV manufacturing giant and the archrival of Tesla (NASDAQ:TSLA) in the country, is considering building a factory in Mexico, according to a report by Nikkei.
In a recent interview to the publication, Zhou Zou, country manager of BYD Mexico said "overseas production is indispensable for an international brand," adding that "Mexico is a key market with vast potential."
The company has reportedly already launched a feasibility study for a Mexican plant, and is it talks with government officials over the specific location and terms for the future plant.
Zou did not mention whether the company intends to market Mexico-built vehicles in the U.S., although the country has been known as a hub for global car manufacturers looking to take advantage of lower export costs into the U.S., as well as its relatively lower wages.
Tesla, for one, has itself announced a Mexico factory back in February 2023 - named Gigafactory 6, the upcoming plant is expected to start production as early as 2026.
BYD has made international headlines earlier this year, when the Chinese company outsold Tesla by nearly 40K EVs in Q4 in China. Tesla has since regained the lead, outselling BYD in January.