Bloomberg: Despite tariffs, BYD cars are still causing a stir in Mexico.

According to Bloomberg, despite trade restrictions, the BYD automotive industry continues to grow, and now there are BYD cars everywhere on the streets of Mexico City.

Dominate the market others have ignored

Bloomberg New Energy Finance estimates that BYD's sales in Mexico nearly doubled last year, and currently, seven out of every ten electric or plug-in hybrid vehicles sold in the country are BYD.

This category accounts for about 9% of the new car market, and companies from the United States, Europe, and Japan have avoided investing in this area, allowing Chinese brands to develop rapidly.

The report attributes this price difference to a clear price difference, with the BYD King Hybrid car priced at around 463,000 pesos (about $26,300), while the Dolphin Mini model is about $2,000 cheaper than its closest competitor.

"It saves a lot on gasoline costs, and the price is very competitive," Monica Reyes-Rosas told Bloomberg. In addition, financing interest rates as low as 7.9%, far below the market average of 13% to 14%, further supports this.

The political impact of these fees is greater than the economic impact.

The Mexican government proposed imposing tariffs of up to 50% on imports from countries without a free trade agreement, and this proposal came into effect in January.

However, Bloomberg cited representatives and analysts who said that Chinese companies can absorb most of the costs, and the limited price increase will not exceed about 15,000 pesos (approximately $850).

Roberto Rocha, CEO of Fimo, said, "Even if a 50% fee is charged, large companies will continue to bet on this market."

According to the "Mexico Plan," electric vehicles can enjoy tax exemptions and incentives, including an immediate tax credit of up to 86% of the vehicle's value between 2025 and 2030, as well as exemption from emissions testing and traffic restrictions.

BYD plans to launch fast-charging technology starting in April next year, which can provide 400 kilometers of range in just 5 minutes. Li Siting, President of BYD Americas, said that the brand has become the "preferred" choice in Mexican cities.

Sources: Bloomberg

Original: toutiao.com/article/1855008098289800/

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