Chinese automakers BYD and Geely have emerged as finalists to bid for a Nissan–Mercedes-Benz assembly complex in Guanajuato, Mexico, a move that would give them an immediate manufacturing foothold on the North American continent. The plant, which has built models such as the Mercedes‑Benz GLB and the Nissan Sentra, comes with established suppliers and logistical links that make it an attractive shortcut into both the U.S. and Latin American markets.
The bid follows a turbulent period for the factory, which faced shutdowns and layoffs amid shifting trade and tariff dynamics. For Chinese carmakers, buying an existing Mexican plant would be more than a capacity play: it would be a way to shorten supply chains, lower shipping and tariff costs, and meet the rules of origin requirements that let vehicles enter the United States and Canada tariff-free under the USMCA framework.
BYD and Geely are already among the fastest‑growing Chinese exporters. BYD’s overseas sales surpassed one million units in 2025 (1.0496 million), representing almost half of its total volume, and its exports to Mexico and Brazil reached about 130,500 and 119,900 units respectively. BYD also opened a Brazil plant in July 2025 with an annual capacity of 150,000 vehicles, a demonstration of the group’s strategy to combine exports with local production.
Geely’s overseas momentum is similarly rapid: in 2025 it exported 44,280 vehicles to North America (up 76.6%) and sold 22,258 units in Mexico (up 237.4%). The company has accelerated local partnerships, formalising a Brazil joint venture with Renault in November 2025 to develop localised new‑energy models and platforms.
The timing reflects larger structural shifts. China’s auto exports hit 8.32 million units in 2025, up 30% year‑on‑year, with new energy vehicle exports alone at 3.43 million, a 70% rise. Mexico has become the single largest destination for Chinese car exports, receiving roughly 625,200 vehicles in 2025 — overtaking Russia and signalling a significant reorientation of Chinese automakers toward the Americas.
Mexico’s appeal is practical: cars produced there can access the U.S. and Canadian markets under USMCA terms, allowing manufacturers to mitigate the impact of rising import barriers elsewhere. Brazil’s move to raise EV import duties to as high as 35% by mid‑2026 has also pushed Chinese firms to accelerate local production in Latin America, making Mexico an especially valuable complement because of its proximity to the U.S.
A Mexican acquisition would rapidly advance BYD’s and Geely’s Americas strategies, but it is not without risk. Political sensitivities in Washington over Chinese investment in strategic sectors could produce scrutiny or diplomatic pressure on Mexico. Compliance with regional content rules, integration of existing supplier networks, and local labour relations will also test any new owner. Legacy manufacturers and local stakeholders will watch closely as Chinese brands move from export‑led growth to on‑the‑ground production in North America.
If a sale goes ahead, it would mark a further phase in the globalisation of Chinese auto manufacturers: from export champions to operators of dispersed manufacturing bases that can serve multiple markets. The acquisition would sharpen competition in the Americas, accelerate the migration of EV production capacity westward, and intensify debates about industrial policy, supply‑chain security and trade in the world’s biggest automotive market.