BYD Is Coming to Mexico

Chinese company BYD is already making cars in Brazil (in an ex-Ford plant) and Indonesia. And other Chinese manufacturers are also on their way to Mexico. Next they will come to Mexico. What does that mean?

Building cars in Mexico is already common. Both Ford and GM do it. Tesla will be soon. The reason for this is that manufacturing in Mexico is a lot cheaper than in the US. But, they will still qualify for the EV tax credits in the US. Another advantage is that shipping costs from Mexico to North America is a lot cheaper and faster than shipping them from China. The Electric Viking tells the story.

While US auto manufacturers, particularly Ford and GM, are not going to benefit from this, clearly the North American consumer. BYD and others make some smaller, lower-priced EV models than what you currently find in North America. While the typical US consumer tends to buy larger cars, this is going to bring a lot of alternatives. If some decent small EVs (the BYD Seagull) become available in the us at sub-$20,000 prices consumers who weren’t considering an EV are likely to see them as the best choice for a second car.

Another possible benefit is that a lot of jobs will be created in Mexico which might decrease the “invasion” at the US southern border.

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