Hong Kong-listed BYD Co. Limited (HK:1211) announced that it aims to sell 100,000 EVs in Mexico by 2025, doubling its projected sales from 50,000 units estimated for this year. The company further stated that it will announce the location of its first factory in Mexico by the end of 2024. BYD shares lost 1.10% as of writing.
Based in China, BYD manufactures electric vehicles (EVs) and batteries for the global markets.
BYD Remains Upbeat About Mexico Growth Plans
BYD’s Mexican head Jorge Vallejo stated that the factory in Mexico is expected to manufacture 150,000 vehicles during the initial phase, followed by an additional 150,000 in the second phase. Meanwhile, in September, the company dismissed rumors about delaying the launch of its Mexican plant, confirming that the project remains on schedule.
BYD started selling EVs in Mexico through imports last year and is currently pursuing an extension of tariff relief for EV imports in the country. Earlier, the company stated that Mexico is regarded as a crucial market for its business. The company emphasized that the new plant in Mexico is designed to produce vehicles primarily for domestic sales, rather than for the U.S. or other export markets.
On the whole, BYD is concentrating on expanding its presence in the North American market. In June 2023, the company reached a significant milestone by delivering its first 100 Yuan Plus vehicles in Mexico. Additionally, in May 2024, BYD launched its first pickup truck, the BYD SHARK, in Mexico, marking the model’s official debut outside of China.
Is BYD a Good Stock to Buy Now?
According to TipRanks, 1211 stock has received a Strong Buy consensus rating, backed by nine Buys and one Hold recommendation from analysts. The BYD Co. share price target is HK$333.45, which implies an upside of 14.6% from the current trading level.
