BYD Cancels Mexico EV Factory Plans Amid US Tariff Uncertainty

BYD, the world's largest electric vehicle manufacturer, has suspended plans to build a major factory in Mexico due to concerns over U.S. tariffs imposed under President Donald Trump's administration and broader geopolitical tensions. The company cited the 25% tariff on vehicles imported from Mexico into the U.S., as well as uncertainties surrounding U.S. trade policy and approval delays from the Chinese government due to fears over technology transfer. BYD executive vice president Stella Li emphasized the impact of geopolitical issues on the automotive industry and the need for more clarity before making new investment decisions. Despite halting its Mexico plans, BYD has opened its first manufacturing facility outside Asia in Bahia, Brazil, although that project has faced labor-related controversies, including allegations of poor working conditions. Meanwhile, other automakers like Nissan and Stellantis have also scaled back Mexico production, and U.S. manufacturers such as General Motors are shifting production back to the U.S. amid tariff pressures. BYD remains interested in expanding in the Americas but has not set a timeline due to the uncertain global trade environment.