HomeBusinessChina's BYD to Launch Electric Vehicles in Mexico Next Year

China’s BYD to Launch Electric Vehicles in Mexico Next Year

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  • The world’s largest electric vehicle maker by sales says it aims to sell 10,000 vehicles in Mexico by 2023.
China's BYD to Launch Electric Vehicles in Mexico Next Year
China’s BYD to Launch Electric Vehicles in Mexico Next Year (Image: Kim Kyung-Hoon/Reuters)

Chinese electric vehicle maker BYD announced it will launch its cars in Mexico next year, with a senior executive setting its sales target at up to 30,000 vehicles by 2024.

Next year, BYD will start selling all-electric versions of its Tang sport utility vehicle (SUV) alongside its Han sedan through eight dealerships across Mexico, the company’s country chief, Zhou Zou, told Reuters ahead of the announcement.

The world’s largest electric vehicle maker by sales expects to sell 10,000 vehicles in Mexico in 2023 and between 20,000 and 30,000 in 2024, Zou said, adding that the firm’s long-term goal is to reach about 10 percent of the total market share. Warren Buffett’s Berkshire Hathaway still has a stake in BYD having sold some of its Hong Kong-listed shares in recent months.

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According to Mexico’s Automotive Industry Association, only 4.5 percent of cars sold in the first eight months of this year were hybrids or about 31,000 of nearly 693,000 sold in total.

While BYD declined to name the initial prices of its vehicles in Mexico, Zou emphasized the company’s affordability, saying, “We are the brand for everyone.”

In September, BYD had set pre-sale prices for its Tanga and Han models at 72,000 euros ($72,500) in Europe. According to Mexico’s statistics agency, few people in the country earn more than $10,000 a year.

BYD’s Zou also said the company aimed to sell cars through 15 licensed dealerships in Mexico by the end of 2023 and reach 30 by 2024.

Representatives from the eight distributors, which include department store chain Liverpool LIVEPOLC1.MX and more traditional distributors such as Grupo Continental appeared at an event alongside BYD later on Tuesday.

The company’s announcement comes as Mexico, a major auto production hub, seeks to make electric vehicles more affordable by cutting sales taxes and import tariffs, moves Zou said marked a positive step.

In recent months, officials in Mexico have said the country is on track to meet its goal of converting 50 percent of automotive production to electric by 2030.

However, a General Motors executive said this month that Mexico is more likely to reach just 15 percent by 2030 if it doesn’t change course.

Zou said that as U.S. states like California go all-electric, Mexico, which produces a lot of cars for its northern neighbors, will likely follow.


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