BYD Is One Step Closer To Selling Cars In America

Build Your Dreams (BYD) is considering establishing a plant in Mexico to increase its presence globally. BYD’s manager in the region, Zhou Zou, spoke to Nikkei about the plans, with the plant pegged as a potential export hub to the US.

The location of the new BYD plant has not been revealed at this point, but the company has reportedly started a feasibility study for the manufacturing hub. Negotiations with local and national officials are also reportedly underway.

The Warren Buffett-backed company paused its initial plan to sell cars in America last year due to the Inflation Reduction Act (among other reasons), which puts a significant roadblock on vehicles imported from the People’s Republic, but now it seems that BYD is trying to adapt to those rules.

The race to become the world’s biggest EV maker was intense in 2023, with Tesla coming out on top with 1.81 million vehicles delivered. BYD came in second (discounting its PHEVs), with the bulk of its EVs produced and sold in China.

If BYD’s Mexican plant pushes through, the company will benefit from lower tariff costs as part of the US-Mexico-Canada Agreement. With assembly in North America, a break from the Inflation Reduction Act could also be expected if every battery component is sourced from within the US or one of its trade partners.

Of course, a new company entering the market will likely offer other financial incentives to help get the first few examples out the door, and after that, the products should speak for themselves.

Plenty of candidates from the automaker’s lineup could attract new buyers. The BYD Dolphin is one of the best-selling EVs in China, while the Seal, a Tesla Model S competitor, would be an interesting proposition with its sleek styling and impressive performance. The Dolphin and Seal are both 2024 World Car of the Year finalists.

The company’s luxury EV division, Yangwang, also offers exciting vehicles, including some that have features we’ve never seen elsewhere, like the U8 supercar and its novel suspension that can hop and self-level the car. Elsewhere, the U7 launched last month has the Porsche Taycan in its sights.