China’s electric car manufacturer, Biady, has recently made new progress in its plans to invest in Mexico. Despite pressure from the United States, Biady has not stopped its global expansion. According to Reuters on August 21, Biady’s head in Mexico, Jorge Vallejo, revealed that the company has narrowed the location of the new factories to three states and is evaluating the incentives provided by these states.

According to Barrego, an ideal factory location requires not only sufficient space, but also good logistics, urban infrastructure and water and gas, all of which are critical to the proper operation of the automotive plant.The goal of BYD is to determine the final site by the end of 2024, and the company is currently conducting an in-depth analysis of the conditions in the candidate states.

Although BIADY has not announced a specific list of candidate states, previous reports suggest that New León, northern Mexico, and Puebla, central Mexico, and St. Louis Potosí may be in the candidate range. These regions have become the investment hotspots for several major car companies around the world due to their mature automotive industry base and good supply chain conditions. For example, Tesla plans to build large plants in New León, while Volvo and BMW also expand their electric car production operations elsewhere in Mexico.

The specific production model of Biady’s new plant in Mexico has not yet been determined, but Barreto revealed that the plant’s annual production capacity is expected to reach 150,000 units in the first phase and an additional 150,000 units in the second phase, with final annual production expected to reach 400,000 to 500,000 units in a few years.

Despite Beaudi’s previous statements that it has no plans to enter the U.S. market, Barreto reiterated that the plant will focus on the Mexican market. He revealed that Beaudi’s executive team plans to meet with the team and the Ministry of Economy of the elected President of Mexico, Claudia Sheinbaum, in the “next days” to present its plant construction plans and demonstrate Beaudi’s development potential in Mexico.

Simbaum, a former mayor of Mexico City, is about to take office as President of Mexico in October this year. She has long promoted the green energy transition and has been driving the electrification of Mexico City buses and the construction of the world’s largest solar panel plant in the city during her term as mayor. In talks with China’s ambassador to Mexico in April this year, Simbaum said it would continue to strengthen China’s and Mexico’s business cooperation, especially in the areas of electric vehicles, investment, tourism and culture.

However, with the escalation of trade tensions between China and the United States, Simboom will face huge challenges in balancing trade relations between Mexico and China and the United States.The United States has been pressuring Mexico to try to curb the expansion of Chinese companies in Mexico, which could affect Mexico’s foreign investment environment and its role in international trade.

Despite this, the expansion plan is still ongoing. Mexico, a major base for the global automotive industry, has a wealth of human resources and huge market potential, attracting investments from multinational automotive companies, including BYD. This project is expected to bring new growth points to the Mexican automotive industry, while further consolidating BYD’s leading position in the global electric vehicle market.

In the future, with the gradual implementation of the Green Energy Policy of the Simboom government, Biady’s investment in Mexico may also get more support. This will not only help boost Mexico’s economic development, but will also strengthen cooperation between China and Mexico in the field of new energy. How to find a balance between China and America will be a major test for the Simboom government on the international stage, and Biady’s projects will undoubtedly play a major role in this process.