BYD Americas, a prominent electric vehicle manufacturer, has announced a strategic shift in its expansion plans, opting to concentrate on emerging markets like Brazil and Mexico instead of entering Tesla’s home market. The company’s CEO, Stella Li, emphasized this decision, citing a dedicated focus on these regions to bolster the adoption of electric vehicles.
In a recent interview, Li highlighted BYD’s commitment to Brazil and Mexico, showcasing plans for a new manufacturing plant in Brazil and exploring potential sites near Mexico City for another facility. This deliberate move underscores BYD’s intention to cater to the growing demand for EVs in these countries while sidestepping immediate entry into the competitive U.S. market.
BYD Americas CEO Stella Li recently announced that the Chinese carmaker is evaluating potential sites for a new manufacturing plant in Mexico, with a decision expected in the second half of 2024. Li emphasized that the plant will primarily serve the Mexican market, as BYD has little interest in targeting U.S. consumers, citing the complexities of the U.S. EV market and a slowdown in consumer adoption.
Despite BYD’s lack of plans to enter the U.S. market, the company’s recent success in surpassing Tesla’s sales in China has put it in the political crosshairs of Western governments. With China controlling 70% of the global EV supply chain, including lithium refining and battery cell production, tensions are running high.
In contrast, Brazil has welcomed BYD with open arms, with the Chinese carmaker planning to produce its popular Dolphin model at a former Ford facility in the coming months. Although Brazil is a significant automotive market, its EV market remains small, with only 19,300 fully electric vehicles sold in 2023, compared to 1.2 million in the U.S.
When asked about BYD’s plans for the U.S. market, Li reiterated that the company is not planning to enter the U.S. market, stating, “We’re not really planning to come to the U.S.” However, Li’s statement may need to be taken with a grain of salt, as the current political environment may change BYD’s decision in the future.
Li’s statements reflect BYD’s strategic vision to target regions with untapped potential and address the needs of consumers in markets that are still developing their electric vehicle infrastructure. While discussions about future market expansions persist, BYD’s current strategy underscores a proactive approach to bolstering electric vehicle adoption in Brazil and Mexico, setting the stage for significant growth and innovation in these regions.
What is the current market share of electric cars in Brazil and Mexico?
In Brazil, the electric car market share stood at 2.4% for plug-in vehicles in 2023, with a notable growth trend. Brazil’s battery electric vehicle (BEV) sales experienced a remarkable surge, marking a 700% year-on-year growth. By the end of 2023, Brazil achieved an electric vehicle (EV) market share of 4.8%, with BEVs accounting for 2.5% of this share.
On the other hand, Mexico exhibited a plug-in market share of 1.3% in 2023, showcasing substantial growth in EV sales. Mexico’s EV market has been on an upward trajectory, with BEV sales growing by 168% year-on-year and PHEVs increasing by 27%. The country’s EV market share is expected to continue expanding, positioning Mexico as a key player in the Latin American electric car market.
Most Popular Electric Car Models in Brazil and Mexico
Brazil:
- Chery Tiggo 5X (PHEV/HEV): Among the top-selling electric vehicles in Brazil, the Chery Tiggo 5X stands out as a popular choice, offering a plug-in hybrid or hybrid option to cater to diverse consumer preferences.
- Volvo XC60 (PHEV): The Volvo XC60, a plug-in hybrid model, has gained traction in the Brazilian market, reflecting the demand for environmentally friendly vehicles with hybrid capabilities.
- BMW iX: The BMW iX has made its mark in Brazil, attracting consumers looking for premium electric vehicle options. Its presence in the market signifies a growing interest in luxury electric cars.
Mexico:
- Porsche Taycan: The Porsche Taycan emerged as the best-selling electric vehicle model in Mexico in 2021, showcasing its popularity and appeal among Mexican consumers.
- Ford Mustang Mach-E: In Mexico, the Ford Mustang Mach-E has dominated electric vehicle sales, representing over 90% of the total electric vehicles produced in the country during 2023. This model’s success underscores its strong position in the Mexican market.
- BYD Yuan/Atto 3: The BYD Yuan/Atto 3 has garnered attention in Mexico, reflecting the brand’s presence and influence in the country’s electric car market. With 45 units sold, this model contributes to BYD’s footprint in Mexico.
In Brazil, the most popular electric car models include the JAC, Renault, and Audi, which are among the leading electric vehicle models in the country. In Mexico, the Porsche Taycan was the best-selling electric vehicle model in 2021, with some 131,000 unitsD sold. Additionally, the BYD Dolphin arrived in Chile in July 2023, with a cost of $34,000 for the 45kWh version. The Chinese brands dominate the electric car market in Latin America, with 8 out of 10 models being from China.
These popular electric car models in Brazil and Mexico showcase a diverse range of options catering to different consumer preferences and driving the adoption of electric vehicles in these regions.
