Guan Cha Zhe Wang·2025-09-13 11:55Core Viewpoint - The Mexican government's proposal to impose tariffs of up to 50% on imports from countries without free trade agreements with Mexico could significantly impact the electric vehicle market, particularly affecting companies like BYD and Tesla, while benefiting traditional U.S. automakers such as General Motors, Ford, and Stellantis [1][3]. Group 1: Tariff Proposal and Impact - The proposed tariff will primarily affect electric vehicles manufactured in China and sold in Mexico, potentially hindering the growth of the electric vehicle market in Mexico [1]. - The Mexican Congress is expected to approve the proposal due to the ruling party's majority, which could reshape the automotive market in North America [1][3]. - The Mexican Electric Vehicle Association indicated that tariffs on Chinese electric vehicles have already increased from 0% to 15% last year, with a potential rise to 50% [1][3]. Group 2: Company-Specific Developments - Tesla's plans for a factory in northern Mexico have been stalled due to economic pressures and uncertainties, which would have created up to 6,000 jobs [3]. - BYD has seen explosive growth in sales since entering the Mexican market at the end of 2023, selling approximately 40,000 vehicles in 2024, accounting for nearly half of all electric and plug-in hybrid vehicle sales in Mexico [5]. - The sales of Tesla's Model 3 and Model Y in Mexico are currently sourced from its Shanghai factory, indicating a shift in strategy due to the proposed tariffs [3][5]. Group 3: Industry Reactions and Global Context - The Canadian Automotive Parts Manufacturers Association noted that the new tariff policy could favor U.S. automakers by making it easier for them to compete against BYD [5]. - China's Ministry of Foreign Affairs expressed opposition to unilateral and protectionist measures, emphasizing the importance of mutual benefits in China-Mexico economic cooperation [5].