According to Bloomberg, BYD recently sent a delegation to Jalisco, Mexico, to explore the possibility of establishing an electric vehicle factory there.
Roberto Arechederra, Minister of Economic Development for Jalisco, confirmed the news, stating that executives from BYD met with state officials last week. In an interview, he revealed that BYD also met with Chinese automotive parts suppliers who have already settled in Jalisco.
"The company conducted a very thorough analysis of the number of educational centers and population near potential factory sites. They saw the ecosystem and infrastructure of Jalisco," said Arechederra.
According to a source familiar with the matter, the cost of constructing a factory in Mexico could be around $600 million, similar to the cost of BYD's electric vehicle factory in Brazil.
A spokesperson for BYD declined to comment on the visit to Jalisco, potential costs of the factory, or considerations for establishing an electric vehicle factory in other Mexican states. In a statement provided to Bloomberg, Stella Li, President of BYD America, stated that the company recently explored business opportunities by visiting "multiple states" in Mexico during the launch of the Dolphin Mini model.
Currently, there is a surge in investment from both Chinese and Western automakers in Mexico. Tesla is constructing a large factory in Nuevo León, Mexico's northern state, with total investments expected to reach $10 billion. According to the government of Nuevo León, Tesla's initial investment will be $4.5 billion.
Chinese competitors such as BYD, Chery Automobile, and Jianghuai Automobile are also experiencing rapid sales growth in Mexico and plan to open production facilities there. Jalisco has attracted many companies in the electric vehicle industry and is actively collaborating with Tesla to expand its supplier base.
"We have been working with Tesla for a long time and will continue to do so," said Arechederra. He mentioned companies already established in the state, such as Tesla's supplier USI, China's Foton Motors assembling electric buses and freight trucks in the state, and Beccar, which collaborates with Foton Motors.
Arechederra stated that Jalisco is developing incentive measures to promote electric vehicle investment, including establishing platforms to help companies recruit workers and setting up 11 business liaison offices in major cities. He added that the Guadalajara Airport in Mexico is undergoing renovations, and Jalisco is close to the Manzanillo Port, providing logistical advantages for Chinese companies.
