Chinese automakers BYD, Geely are bidding on Mexico’s shuttered Aguascalientes Nissan plant

Two Chinese automakers — BYD and Geely — are among 3 finalists competing to acquisition a car manufacturing works successful the north-central authorities of Aguascalientes, according to an exclusive study published by the Reuters quality agency.

The finalists — Vietnamese EV shaper VinFast is the 3rd rival — were selected from among 9 participants, including Chinese automakers Chery and Great Wall Motor.

“México nary solo es un mercado clave, es parte del futuro de BYD”.

Stella Li, vicepresidenta ejecutiva planetary de BYD, confirma que la marca ya prepara sus próximos pasos en nuestro país, incluyendo la llegada de Denza, su firma de lujo eléctrica. En entrevista con Automóvil… pic.twitter.com/DoyxCb2iOS

— Automóvil Panamericano (@AutomovilMex) December 10, 2025

Mexico is simply a large export marketplace for BYD and Geely arsenic Chinese automakers person collectively boosted their marketplace stock from zero successful 2020 to astir 10% past year.

The Aguascalientes factory, primitively a US $1 cardinal associated task betwixt Daimler and the Renault-Nissan Alliance that opened successful 2017, is particularly attractive, peculiarly since it comes with skilled workers, proscription infrastructure and a 230,000-unit yearly capableness acceptable to go.

A triumph for either of the 2 Chinese contenders would springiness China a much-desired manufacturing foothold successful a state wherever U.S. tariffs are fueling mill closures and layoffs, Reuters reported.

“After 3 decades of growth, conveyance exports to the United States fell astir 3% successful 2025” and an adjacent steeper diminution is apt this twelvemonth if tariffs remain, Reuters reported. Additionally, “Mexico mislaid astir 60,000 auto-industry jobs past year.”

While U.S. tariffs are hammering Mexico’s car assemblage and Chinese concern “could make much-needed jobs,” Mexican officials are understandably acrophobic that specified a Chinese beingness successful Mexico “could inflame Washington and jeopardize [upcoming] North American commercialized statement negotiations,” Reuters said.

Although the Mexican authorities can’t legally artifact a mill sale, officials are wary astir Chinese accumulation successful Mexico, the study says. 

Economy Ministry officials are reportedly pressuring Aguascalientes officials to hold immoderate determination connected the merchantability until aft the commercialized talks are completed. The authoritative associated reappraisal process of the USMCA commercialized statement is scheduled for July 1, but formal discussions began past month.

The bid to get the works is simply a important measurement for BYD which has sought to physique a caller mill successful Mexico for years. 

Just past year, China’s Ministry of Commerce suspended support of a BYD woody for a monolithic caller works that would person produced up to 500,000 vehicles annually, citing concerns that BYD’s proprietary exertion could leak to US competitors.

Mexico deed Chinese cars and different goods with 50% tariffs past year, which had the effect of incentivizing Chinese automakers to manufacture successful Mexico. They presumption Mexico arsenic a keystone successful their strategy to merchantability cars successful Latin America.

With reports from Reuters and Electrek