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Chinese automaker BYD will expand its production of electric vehicles in Brazil and Mexico from 2025, targeting international markets and consolidating its presence in Latin America with new local factories
BYD, the Chinese automotive giant, is preparing to start vehicle production in Brazil and MexicoWith the objective of expanding its global presence and meet the growing demand for electric cars. During the launch of the new Shark pickup truck in Mexico City, Stella Li, CEO of BYD in Latin America, revealed details about the new factories and the company's plans for the coming years, according to the Terra website.
The factory in Camaçari (BA)
The first Chinese BYD factory in Brazil will be installed in Camaçari, Bahia, in the former Ford plant. Initial production is scheduled to begin in mid-2025, initially operating under a SKD (Semi Knocked Down) regime, where vehicles are assembled from prefabricated kits. The expectation is that full production of the vehicles will begin by the end of the same year.
Among the models that will be produced at the Camaçari factory are the electric cars Dolphin Mini, Dolphin and Yuan Plus, as well as the hybrid Song Plus. BYD plans to manufacture up to 12 different models in Brazil, including the new Shark pickup truck, which should initially be imported and, depending on sales success, could be produced locally.
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New factory in Mexico
In addition to Brazil, BYD is also investing in Mexico, with plans to build a factory that will have the capacity to produce up to 150 thousand vehicles per year. Construction of the Mexican unit is expected to begin next year. This factory represents a crucial part of BYD's strategy to get closer to the North American market, despite recent tax increases import for Chinese vehicles in the United States.
The strategic location in Mexico will allow BYD to explore markets throughout North America and possibly enter the competitive US market in the future.
Global expansion and sustainability
The expansion of Chinese BYD into Brazil and Mexico is part of a larger movement by the company to solidify its position as global leader in electric mobility. The company has invested heavily in sustainable technology and aims to reduce carbon emissions in its operations and products.
In Brazil, the Camaçari factory will be a crucial support point for the brand, allowing it to better serve the local market and potentially other South American markets. Local production will also help BYD to avoid high import tariffs, making your vehicles more competitive in price.
Challenges and opportunities
Although China's BYD is optimistic about its new factories, the company will face significant challenges, including need to adapt its operations and supply chain to new markets. The competitiveness of the automotive market, especially in Brazil, where several automakers are already established, will be a test for BYD.
However, the growing demand for electric and hybrid vehicles presents a significant opportunity. With environmental awareness rising and governments offering incentives for cleaner vehicles, BYD is well positioned to capitalize on these trends.
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