Tesla Rival Charts Ambitious Expansion Plan In Mexico, Eyes 10% Market Share, Says Report

Zinger Key Points
  • BYD has been the standout Chinese EV maker, which has weathered the COVID-19 disruptions fairly well.
  • Apart from dominant position in the domestic market, the company has chalked up an ambitious expansion plan in the Americas.
Tesla Rival Charts Ambitious Expansion Plan In Mexico, Eyes 10% Market Share, Says Report

BYD Company Limited BYDDY BYDDF is flexing its muscles in international waters, with the Warren Buffett-backed Chinese electric vehicle maker eyeing a strong presence in the North American country of Mexico.

What Happened: BYD is planning to commence sales of its EVs in Mexico in 2023 and the all-electric Tang SUV and Han sedan will likely be the first vehicles launched, Zhou Zou, the company’s country head told Reuters.

The company plans to sell between 20,000 and 30,000 EVs in Mexico in 2024, aiming to capture 10% of the total market in the long run, the report said. The focus is on affordability, said Zou, and added, “We are the brand for everybody.”

See Also: As Tesla Slashes China Prices To Reinvigorate Demand, Buffett-Backed EV Maker Surprises By Doing The Opposite

BYD plans to distribute the cars through 15 licensed dealers in Mexico by the end of 2023 and expects to increase dealerships to 30 by 2024. Zou also highlighted Mexico’s efforts to increase electrification through the reduction in sales taxes and import tariffs.

Mexico recently said it was on track to achieve 50% electrification of automobiles by 2030, according to Reuters.

Why It’s Important: The report comes on the heels of BYD unveiling two brand new models —  BYD Song Plus DMI-I SUV and Yuan Plus EV — in Brazil.

In a video address coinciding with the launch event, BYD’s Chairman Wang Chunafu said, “Moving forward, we will continue expanding our presence in the Americas by starting local production in Brazil, and we will also bring a full range of BYD passenger NEVs to 17 countries like Mexico, Chile and Colombia.”

BYD has been a strong player in the Chinese market. Even as most other domestic rivals and Tesla Inc. TSLA were floundering amid the frequent COVID-19 outbreaks in China, the Buffett-backed company has been reporting stellar production and sales figures.

Price Action: BYD’s U.S.-listed ADRs closed Tuesday’s session at $46.63, up 5.50%, according to Benzinga Pro data.

Read Next: Best Chinese Stocks

Posted In: ChinaCovid-19electric vehiclesEurasiaEVsWarren BuffetNewsTechMedia