BYD puts off Mexico plans and reorganizes EV and concept car plans under U.S. tariffs and labor issues in Brazil.

BYD, the global-leading electric vehicle (EV) car producer has stalled its plans of constructing a factory in Mexico due to uncertainties about tariffs on cars manufactured in Mexico to be imposed by the US. The move signifies a transformation in the trade policy as trade policies change strategies in the EV and concept car segments.

This means that the automotive industry is highly affected by geopolitical issues, BYD executive vice president Stella Li stated. Once the policy in the U.S. is more definite, the company plans on reconsidering the expansion plans in North or South America.

The action follows a larger trend till now, with automakers such as Nissan and Stellantis having cut production in Mexico due to a looming 25 percent U.S. import tax. Globalization strategies with regard to production by EV and concept car manufacturers are being redefined with a bias toward localized manufacturing and working partnerships.

BYD has continued with the manufacture of its electric and concept cars at its plant in Bahia, Brazil, though it shelved all its efforts in Mexico. But then the project was undermined due to the discovery of labor malpractice by Brazilian authorities, making the firm repost about its subcontractor services and international market expansion system.

Nevertheless, BYD has a strong position in the market of EVs and concept cars. In the recent past, the company has overtaken Tesla in sales across Europe, and it is expected to sell more than 5 million EVs within the next three years. As the demand of the world has increased, the shares of BYD soared by 38 percent all in the year 2025.