BYD continues to plan expansion in North and South America but has not determined a specific timeline due to geopolitical tensions. The company is being cautious and waiting for a clearer context before investing heavily in this region.
Meanwhile, issues such as tariffs and trade barriers have made it difficult for automakers, forcing BYD and its competitors to adjust strategies to protect profits and stabilize production.
MAIN CONTENT
BYD has delayed its factory investment in Latin America due to geopolitical tensions and high import tariffs.
The labor incident at the Brazil factory has made BYD cautious, prioritizing cooperation with local businesses.
Xiaomi has postponed plans for international electric vehicle exports until 2027 to focus on meeting domestic demand.
Why is BYD slow to expand production in North and South America?
Stella Li, BYD's Vice President, stated that current geopolitical tensions have made the company hesitant about the timing and investment strategy in the U.S. region. She emphasized: 'Political issues have a significant impact on the automotive industry; we need to wait for greater clarity before deciding.'
These instabilities, along with the 25% import tax applied to vehicles exported from Mexico to the U.S., have reduced profit margins and made long-term planning difficult. Many automakers have reduced production or raised selling prices to offset costs.
BYD needs to 'slow down, withdraw from the hot growth strategy to work more closely with local businesses. This will take time but is necessary.'
Stella Li, BYD's Vice President, 2025
How does the labor incident at the Brazil factory affect BYD?
Starting from December 2024, BYD's factory project in Brazil was stalled when the main contractor was accused of violating labor rights, holding workers' passports, and delaying payments to over 160 workers. BYD handled the situation by accommodating workers in hotels and reviewing the working conditions of the outsourced labor force.
Vice President Stella Li acknowledged that the incident has forced BYD to adjust its development strategy, slowing down and strengthening cooperation with local partners to ensure legal compliance and corporate reputation.
What achievements has BYD made in the European market?
BYD is ramping up in the European market with an investment plan of up to 20 billion USD, focusing on developing compact and affordable vehicles suitable for domestic customers. The company has self-managed logistics and eliminated intermediate import forms.
In 2025, BYD will surpass Tesla for the first time in the number of electric vehicle deliveries in Europe, expected to sell over 5 million vehicles globally. This has helped stocks rise by 38% in the year, showing investor confidence in BYD's battery capabilities and global strategy.
Why has Xiaomi postponed expanding electric vehicles to the international market?
Lei Jun, CEO of Xiaomi, announced the decision not to export electric vehicles abroad until at least 2027. This decision stems from the very high domestic demand for the SU7 and YU7 models, causing the current production capacity to be insufficient.
The SU7 electric vehicle has sold better than Tesla's Model 3 since December 2024, while the YU7 attracted a large number of orders immediately after its launch in May 2025. CEO Lei Jun stated that the company will strive to increase production capacity but did not provide specific details.
'We focus on serving domestic demand before expanding internationally, ensuring quality and stability in production.'
Lei Jun, CEO of Xiaomi, livestream on May 31, 2025
Comparison table of the differences in the electric vehicle expansion strategies of BYD and Xiaomi
Criteria BYD Xiaomi Timing of international market expansion Ongoing but slowing down due to geopolitical factors Delayed until at least 2027 Focus markets North America, South America, Europe Prioritize domestic market in China Product strategy Focus on affordable, compact, independently operating vehicles Newly launched sedan SU7, SUV YU7 for domestic service Biggest challenges Tariffs, political tensions, labor issues High domestic demand, increasing production capacity
Frequently Asked Questions
Why has BYD not announced a specific timeline for expansion in Latin America? Due to geopolitical tensions and high import tariffs, BYD needs to wait for a clearer context to decide. How does the labor scandal in Brazil affect BYD? It makes BYD more cautious in strategy, prioritizing deep cooperation with local partners and ensuring legal working conditions. What has BYD achieved in the European market? BYD surpassed Tesla in electric vehicle sales in 2025 and plans to invest 20 billion USD in this market. Why has Xiaomi not exported electric vehicles internationally? Xiaomi prioritizes meeting strong domestic demand in China, postponing international plans until 2027. What impact does the 25% tax from Mexico to the U.S. have? This tax reduces profit margins, complicates production, and forces many companies to adjust prices or reduce output.
Source: https://tintucbitcoin.com/byd-tam-hoan-nha-may-mexico/
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