Chinese electric vehicle giant BYD BYDDY BYDDF is setting ambitious targets for the Mexican market, aiming to sell 100,000 electric vehicles by 2025. This comes despite potential tariff challenges from former President Donald Trump that could impact the company’s growth strategy.
What Happened: Jorge Vallejo, who leads BYD’s operations in Mexico, announced plans to sell 50,000 EVs in the country this year, with a goal to double that figure by 2025, Reuters reported on Wednesday. Vallejo also mentioned that BYD plans to reveal the location of its first Mexican factory by the end of the year. The facility is expected to initially produce 150,000 vehicles, with a potential expansion to increase output by another 150,000 units.
This comes at a time when Trump has vowed to impose 200% tariffs on Chinese made cars in Mexico if he wins the 2024 Presidential election.
BYD, which began importing vehicles to Mexico last year, is seeking an extension of tariff relief for its EV imports. Despite the looming threat of tariffs, the company remains optimistic about its expansion in the Mexican market.
Why It Matters: BYD’s expansion plans in Mexico are part of a broader strategy to navigate global tariff challenges. Earlier this year, BYD reportedly delayed significant investments in Mexico, awaiting the outcome of the U.S. elections. This cautious approach reflects the uncertainties posed by fluctuating American policies.
In July, Chinese EV manufacturers, including BYD, began exploring alternative markets like Africa due to increased tariffs from the EU and U.S. These protectionist measures have prompted Chinese companies to diversify their market presence.
Despite these hurdles, BYD has shown resilience, with analysts predicting a rebound in the Chinese EV market. BYD’s aggressive global expansion and new model launches are expected to sustain its growth momentum, underscoring the company’s strategic adaptability in the face of international trade challenges.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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