The Warren Buffett-backed Chinese electric vehicle maker is eyeing a strong presence in the North American country of Mexico, with BYD Company Limited BYDDY BYDDF flexing its muscles in international waters.
What Happened: BYD plans to begin sales 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 report said that the company intends 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 focus is on affordability, and we are the brand for everyone, said Zou. As Tesla slashes China Prices To Reinvigorate Demand, Buffett-Backed EV Maker Surprises By Doing The Opposite
BYD expects to increase dealerships to 30 by the end of 2023 and distribute the cars through 15 licensed dealers in Mexico by the end of 2023. Zou also highlighted Mexico's efforts to increase electrification through the reduction of sales taxes and import tariffs.
Mexico is on track to achieve 50% electrification of automobiles by the year 2030, according to Reuters.
Why is it important to know that the report came 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 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 is a strong player in the Chinese market. The Buffett-backed company has been reporting excellent production and sales figures, even as most other domestic rivals and Tesla Inc. TSLA were floundering amid the frequent COVID 19 outbreaks in China.
Price Action: BYD's U.S. listed ADRs closed Tuesday at $46.63, up 5.50%, according to Benzinga Pro data.