2 months ago
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Chinese carmakers are swarming Mexico, and BYD is right at the front. While the Mexican government just rolled out steep new tariffs on Chinese imports, those barriers haven’t stopped BYD from tightening its grip on Mexico’s electric vehicle market.
Mexico City streets are now packed with battery-powered BYD compacts. Seven out of every ten EVs or plug-in hybrids sold in the country now carry a BYD badge, according to Bloomberg.
EVs and plug-ins already make up 9% of all new-car sales in Mexico. But most big automakers still don’t bother with this space. BYD, meanwhile, doubled its Mexican sales last year. Its small, cheap EVs are drawing in middle-class drivers who are tired of paying for gas and want a decent car that works.
BYD dealers push ahead despite new 50% import tariffs
President Claudia Sheinbaum didn’t hide her frustration. In September, she pushed for new tariffs as high as 50% on cars from countries without free trade deals, and that includes China.
Lawmakers approved it in December. It kicked in on January 1. Still, it’s not clear if it’s doing anything. BYD dealers aren’t sweating. One of them, David González, said they ran year-end discounts to push sales before the tariffs hit.
But even now, he said BYD probably won’t raise prices more than 15,000 pesos. Most of the cost will be absorbed.
That confidence isn’t just marketing. Roberto Rocha, the CEO of Vemo, a taxi and EV charging company that works with Uber, said BYD and JAC, another Chinese brand, can survive even if tariffs stay at 50%. “We believe the big players are going to continue betting on the market and they’re going to have to absorb some of those increases,’’ he said.
There’s no real sign that demand will slow down. Eugenio Grandio, who runs Mexico’s electromobility association and used to work at Tesla, said legacy carmakers have themselves to blame.
“Non-Chinese manufacturers have invested very little in bringing these technologies to Mexico,” he said. “They say there’s no demand, and then they complain that the Chinese are selling them. So is there demand, or isn’t there?”
EV incentives, cheap loans, and lack of rivals give BYD the upper hand
Mexican buyers aren’t just driven by price tags. The government is giving EV buyers all kinds of breaks. No federal tax at the time of purchase. Lower income taxes. Annual fees waived in some states. No emissions tests.
Plus, EVs can drive every day, even during air quality restrictions that block other vehicles. Between 2025 and 2030, buyers can get an immediate tax deduction of up to 86% of the car’s value under “Plan Mexico.”
It’s not just tax perks. Loans are easy to get. Nearly 63% of Chinese cars bought in Mexico in 2025 were financed, up from 56% the year before. That’s even higher than the national average.
BYD loans come from BBVA and Banorte with rates between 8.5% and 12.9%. That’s lower than the market average of 13% to 14%. Some loans even go as low as 7.9%, according to a BYD statement.
And yes, these cars are everywhere now. The BYD Dolphin Mini, their most popular model, is already outselling Chevrolet’s Spark EUV, and it’s $2,000 cheaper. You’ll find BYD showrooms in business districts, ads at Mexico City’s airport, and their cars zipping around neighborhoods like Condesa and Polanco. Even people from rural states are reportedly checking them out.
None of the legacy brands are even close. GM sold only 1,540 EVs in Mexico last year. Ford’s Mach E sells for $10,000 more than it does in the U.S. Nissan gave up selling the Leaf three years ago. Tesla barely sold 4,000 cars in 2024, which is about one-quarter of BYD’s volume for that year alone.
It’s not just EVs either. Gas-powered Chinese models are also flooding the market. China now holds a 20% share of Mexico’s overall new-car market, up big from five years ago. That’s partly thanks to overcapacity at home, plus Chinese subsidies and export incentives.
BYD will start bringing its fast-charging system to Mexico in April. It gives 400 kilometers of range in five minutes. “If you go to any city in Mexico, you can see that BYD is the darling,” said Stella Li, president of BYD Americas, during a press conference in Zhengzhou. “Every time we have a weekend event, it’s full of people. They dream about their own BYD car.”
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