BYD Launches Shark Hybrid Pickup in Mexico, Eyes New Factory Amid US Tariff Hike

BYD has introduced its Shark hybrid pickup truck to the Mexican market, with plans for a new factory, aiming to bolster its North American footprint despite recent U.S. tariff hikes on Chinese electric vehicles.

BYD's New Shark Pickup Enters Mexican Market as US Hikes Tariffs on Chinese EVs

According to MSN, the Shark boosts BYD's position in the North American market by competing directly with incumbents Ford, General Motors, and Toyota.

It is now only accessible in Mexico, according to executives, and marks the first time the world's largest electric vehicle (EV) manufacturer has released a new product outside of its home country.

BYD chose Mexico due to the country's rapidly increasing demand for pickup vehicles, according to Stella Li, Chief of Americas.

The unveiling event in Mexico took place hours after the United States. President Joe Biden announced significant tax increases on a variety of Chinese imports, claiming unfair competitive tactics. Duties on Chinese electric vehicles were doubled to more than 100%.

U.S. Trade Representative Katherine Tai later confirmed that the United States is considering duties on Mexican imports. In an interview with Reuters following the event, Li stated that the tariff increases in the United States do not influence BYD, which wants to build a plant in Mexico.

"We don't have plans to go to the U.S. market, so this announcement does not impact us at all," Li said.

"When we build a Mexican plant, we only consider the Mexican market and other countries' markets, we have not considered the U.S.," she added.

According to Li, there is now a shortlist of potential sites for BYD's factory in Mexico, which will be centrally positioned in the Latin American country.

Li stated that a "deeper dialogue" was required to reach a final conclusion, which was expected by the end of the year.

The plant, with a capacity of 150,000 vehicles per year, will take two to three years to complete, Li said.

Chinese Automakers Expand in Mexico, BYD's Shark Pickup Enters Market Despite US Pressure

Chinese automakers' involvement in Mexico has increased dramatically since 2017. Last year, one out of every ten cars sold in Mexico came from a Chinese automaker, with MG Motors, a subsidiary of SAIC, accounting for roughly half of the market.

According to Reuters, Mexico's federal government is under pressure from the United States to keep Chinese manufacturers at arm's length by refusing to grant incentives such as low-cost public land or tax breaks for EV production.

Li stated that BYD has not yet discussed incentives with Mexico's federal government, citing the hectic period preceding the country's elections in June. She did not provide information on the incentives BYD would seek from the federal government or individual states.

"I think all the states will try their best to give the best offer to attract us because we will be bringing a lot of technology there and create a lot of local jobs," Li said. "Every state, and even the central government, would love this kind of investment."

BYD's Shark will compete in Mexico with compact and medium-sized trucks like the Toyota Tacoma and Ford Ranger. It is, however, more expensive than most makers of both competing vehicles, starting at 899,980 pesos ($53,442.68) for the Shark GL and 969,800 pesos ($57,588.73) for the top Shark GS.

According to BYD, the Shark can drive up to 100 kilometers (62 miles) in EV mode before needing to be recharged, and up to 840 kilometers when using both electric and combustion techniques.

The pickup consumes 7.5 liters of fuel per 100 km (31.4 mpg) traveled, the brochure detailed. $1 equals 16.8401 Mexican pesos.

Photo: P.L./Unsplash