After India's Rejection the China's BYD Co Ltd is making moves to establish an electric vehicle (EV) factory in Mexico

China's BYD Co Ltd making moves to establish an electric vehicle (EV) factory in Mexico, with the aim of creating an export hub to the United States, according to a report by Nikkei. BYD, which is known for its affordable models and diverse lineup, recently surpassed Tesla Inc to become the world's leading EV maker in terms of sales. 

The company has initiated a feasibility study for the Mexican plant and is currently in negotiations with officials regarding the factory's location and other terms. While BYD primarily focuses on the Chinese market, it is also looking to expand globally by constructing new plants overseas and increasing Chinese exports. 

The Mexican automotive sector, which is home to numerous top global players, is closely intertwined with the U.S. industry.

 BYD Mexico country manager Zhou Zou emphasized the importance of overseas production for an international brand. However, BYD's Mexico office declined to comment on the matter. 

Major U.S. automakers have expressed concerns about the potential impact of Chinese cars on their own prospects, echoing the sentiments of Tesla CEO Elon Musk, who believes that Chinese automakers could outperform global rivals in the absence of trade barriers. 

A forthcoming report by the Alliance for American Manufacturing warns that the introduction of low-cost Chinese vehicles, supported by the backing of the Chinese government, could have severe consequences for the U.S. auto sector. In Latin America, BYD intends to invest $620 million in a new industrial complex in northeastern Brazil, occupying the site of a former Ford plant that closed in 2021.