Monday, June 24, 2024

Chinese manufacturer will begin selling electric cars in Mexico in 2023

BYD, China’s largest electric vehicle maker by sales, announced on Tuesday it will launch its cars in Mexico next year.

According to the company’s country head Zhou Zou, they will start by selling the EVs across fifteen dealers in the country, hitting the market with two models: the Tang sport utility vehicle (SUV) and the Han sedan.

Neva Zhang, business manager of BYD México, told Milenio newspaper they seek to take advantage of the federal government’s incentive to promote electric mobility such as waived tariffs for electric motor imports.

BYD, which stands for Build Your Dreams, has positioned itself as a favorite in the EV segment. For nine consecutive years, it’s been China’s largest EV maker by sales and was also the first brand worldwide to manufacture, design, and sell EVs to use as taxis.

BYD Tang electric vehicle
The BYD’s Tang SUV.

The Chinese company already sells trucks and lift trucks to private companies like Grupo Modelo, as well as vehicles to be used as taxis in Mexico’s public transportation fleet.

“BYD Mexico has more than nine years of local experience, achieving significant milestones in new energy taxis, buses, and lift trucks,” said Zhang.

Still, EV demand from Mexican consumers is low, representing only 1% of the national market. According to Mexico’s Automotive Industry Association, 4.5% of cars sold since January were hybrid, which corresponds to 31,000 of nearly 693,000 sold in total.

Zhang says that even when demand is low, they firmly believe mobility can transform to more sustainable methods. “We are happy with the new step taken by BYD in Mexico. We want to be a long-term partner to promote zero emission solutions in the country,” she said.

electric delivery trucks by BYD company used by Grupo Modelo, Mexico
BYD México already sells buses, electric trucks, forklifts and other logistics vehicles here. These BYD trucks are owned by Grupo Modelo.

Although no price tag has been shared for the cars, Zou stressed on the company’s affordability. “We are the brand for everybody,” he said.

Francisco Medina, head of Grupo Fame, one of the main car dealers, foresees that prices in Mexico could be similar to those of the European market, where pre-sale prices for its Tang and Han models reached 72,000 euros (US $72,500).

The company hopes to sell 10,000 vehicles in Mexico in 2023, increasing to between 20,000 to 30,000 in 2024, adding that the firm’s ultimate goal is to reach around 10% of the total market share.

Among the 15 confirmed car dealer companies that will start selling BYD vehicles in 2023, are Dalton, Continental, Grupo Fame, Grupo Farrera and Mexican retailer store Liverpool. By selling BYD cars, Liverpool will venture into car sales for the first time.

Francisco Medina, president of Grupo Fame Mexico
Francisco Medina, owner of Grupo Fame, one of the 15 dealers that will sell BYD cars in Mexico, said he foresees BYD car prices being similar to prices in Europe, where they currently sell for about US $72,000.

“Liverpool is a partner. It doesn’t mean that the cars will be sold in their [conventional] stores, but they will be commercialized in spaces where the quality that the company wants is offered,” Zhang told Milenio.

David García, Liverpool’s sales representative said that they will start selling BYD cars in Mexico City with two agencies and two boutiques.

Finally, Zhang said that among BYD competitive advantages are the fact that the company produces its own batteries and semiconductors.

“We don’t have problems in the supply chain, since we have everything from raw materials to high technology and manufacturing units.”

With reports from Milenio, El Economista and Reuters

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