Feng Huang Wang·2025-07-02 23:49Core Viewpoint - BYD has suspended plans to build a large factory in Mexico due to geopolitical tensions and uncertainties stemming from U.S. trade policies [1][2] Group 1: Expansion Plans - BYD remains interested in expanding in the Americas but currently has no timeline for new investments [1] - The Bahia factory in Brazil is BYD's first factory outside Asia, with the first vehicle rolling off the production line on July 1 [1] - Once operational, the Bahia factory is expected to produce 150,000 vehicles annually, with plans to double capacity to 300,000 in about two years [1][2] Group 2: Geopolitical Impact - Geopolitical factors significantly impact the automotive industry, prompting companies to rethink their strategies in other countries [1] - BYD is waiting for clearer geopolitical conditions before making further decisions regarding expansion [1] Group 3: Import Tax Considerations - BYD has requested a 12-month import tax exemption from the Brazilian government for the first phase of the factory, concerning the assembly of vehicle kits [2] - The company argues that imposing the same import tax on semi-assembled vehicles as on fully assembled cars would render the importation of semi-assembled vehicles impractical [2]