Chinese authorities delay approval for BYD’s pending EV plant in Mexico amid fears of the technology leaking into the US
Booming global EV automaker Build Your Dreams (BYD) has hit a snag with the Chinese government, which has delayed the green light to build a new plant in Mexico amid fears that proprietary technology in the southern part of North America could more easily make its way into the United States
BYD is no stranger to Electrek’s daily EV news beat. The Chinese auto conglomerate continues to prove that it is a global force to be reckoned with, delivering some of the most advanced EV technology within a growing lineup of models across multiple marques.
We’ve already seen BYD expand well outside of its native China into new markets in Asia, Europe, and South America. While we have had opportunities to test drive BYD models in the US, plans to enter its market have been speculation. That prospect appears to be a longshot given the current political climate under the Trump administration and a looming trade war, not only against China but to its neighbors in Mexico and Canada.
Before the current hostile trade environment amongst these global superpowers, BYD had made significant strides in its international production strategy, including new facilities in Brazil, Hungary, and Indonesia. Since 2023, BYD has also been working on erecting a new facility in Mexico and has already delivered some models to the nation, including the Yuan Plus, seen above and below.
According to a new report, however, BYD’s progress in Mexico has been halted by China’s Ministry of Commerce. The ministry is weary of approving said plant in fears that the automaker’s technology could more easily make its way into the R&D centers of EV automakers in the US.
BYD’s Mexico plant on hold as Chinese Ministry weighs risk
Per The Financial Times, China’s Ministry of Commerce has delayed its approval of BYD’s EV manufacturing plant in Mexico, a vital green light required by domestic automakers to produce EVs overseas. A source in the report cited Mexico’s proximity to the United States as the most significant concern for the delay.
Those respective authorities in China fear that BYD’s advanced (and in many cases, leading) technology could more easily end up in the possession of US competitors through Mexico, as the US neighbors to the south would gain unrestricted access to the Chinese automaker’s technology and production practices. Those powers went as far as to suggest that Mexico could even assist the US in gaining access to BYD’s technology.
That level of paranoia is justified and accurately represents the current trade climate and market competition among global trader partners. There is also growing sentiment of animosity toward the US following proposed tariffs on imports from other countries, like China’s hub of Beijing and even Mexico.
Despite China’s fears, Mexico has taken a stand against both Trump (while simultaneously trying its best to maintain a productive relationship with the US) and China, placing its own tariffs on Chinese textiles. Per a source close to the matter:
Mexico’s new government has taken a hostile attitude towards Chinese companies, making the situation even more challenging for BYD.
Trump has accused Mexico of being a “backdoor” for products produced in China to more easily make their way north to US consumers thanks to NAFTA, which is likely another reason for caution among the Chinese Ministry officials.
BYD is one of several Chinese EV automakers attempting to set up shop in Mexico to gain at least some form of presence in North America. In the past year, we’ve seen Hozon Auto sub-brand Neta and ZEEKR sign multiple regional partnerships to prepare for market entry.
However, those plans, including those of BYD, could be on hold for the foreseeable future as the Chinese government weighs the risk and reward of enabling the technology of those companies to be more susceptible to benchmarking tactics from US competitors.
In BYD’s case, it has not entirely ruled out a plant in Mexico. Still, those plans are certainly in limbo, especially since the Chinese automaker lacks a necessary supply chain in the region and would need to import parts from China, which would certainly face higher tariffs. Per BYD executive vice president Stella Li:
Every day is different news, so we just have to do our job. More study has to be done on how we can satisfy and improve to deliver the best result to everybody.
This is a continuing narrative we will keep an eye on.
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Tesla has announced that it is launching Cybertruck in South Korea, only the fourth market where the electric pickup truck becomes available and the first outside North America.
While Tesla took reservations worldwide when unveiling the Cybertruck in 2019, the automaker never confirmed plans to launch the vehicle outside North America.
The Cybertruck is currently only available in the US, Canada, and Mexico.
By any metric, it has been a total commercial flop.
Tesla had accumulated over 1 million reservations for the vehicle and planned for a production capacity of 250,000 units per year, with CEO Elon Musk saying that it could be increased to 500,000 units.
After Tesla unveiled the production version for a much higher price than announced initially and a significantly shorter range, demand fell off a cliff, and now Tesla now has issues selling the truck at a rate of 25,000 units per year.
This quarter is expected to be better due to the end of the tax credit in the US pulling demand forward, but it could prove extremely difficult to move the Cybertruck in North America starting in October.
Tesla is now turning to South Korea to try to sell some Cybertrucks.
The American automaker has told South Korea reservation holders to confirm their orders over the next week, as it will start converting reservations into orders – something it hasn’t done since expanding into Canada and Mexico last year.
The announcement was made via X:
South Korea might sound like a strange, relatively small, distant market for the first expansion of the Cybertruck outside North America, but Tesla is extremely popular in South Korea.
In July, it sold a record number of more than 7,000 vehicles in a single month.
Tesla also has an extremely strong shareholder base in the country.
However, in South Korea, the Cybertruck is going to start at 145 million South Korean won, which is approximately $104,000 USD – making the Cybertruck about $24,000 more expensive than in the US.
It should not be easy to sell in significant volumes despite Tesla’s popularity in the market.
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Environment
Hyundai is plowing billions into building more cars in the US, including a new robot-run plant
Hyundai wants to sell more vehicles in the US. The South Korean auto giant is investing an additional $5 billion to ramp up production. With billions more on the table, Hyundai will build a new robotics facility while ramping up production of Hyundai and Kia vehicles in the US. Here’s what’s coming next.
How Hyundai’s $26 billion investment will boost US sales
Have you noticed more Hyundai, Kia, and Genesis vehicles on the road lately? Over the past few years, the South Korean automakers have grown significantly in the US.
In the first half of 2025, Hyundai and Kia sold more vehicles than in any first half since entering the US market nearly 40 years ago.
Hyundai has no plans of slowing down after announcing another $5 billion investment on Tuesday, “significantly expanding the Group’s footprint in the US market.” The new funds will be used for several new projects, including a new state-of-the-art robotics facility and steel plant in Louisiana.
The new funding is in addition to the $21 billion investment Hyundai announced just a few months ago, bringing the company’s total to a whopping $26 billion.
Hyundai will use the investment over the next three years (2025 – 2028) to boost production, including Kia and Genesis vehicles.
It’s also building a new robotics innovation hub to design, manufacture, and deploy vehicles. Hyundai expects the advanced new facility will create about 25,000 jobs in the US over the next four years. It will have an annual production capacity of 30,000 units.
EVs and hybrids are driving growth
The new investment comes after Hyundai and Kia hit a milestone, selling a combined 1.5 million “eco-friendly” vehicles cumulatively in the US this week.
Hyundai’s Tucson Hybrid and the Kia Niro Hybrid are the brand’s top-selling eco-friendly cars. Meanwhile, the all-electric Hyundai IONIQ 5 remains one of the top-selling EVs in the US and is the brand’s fourth most popular eco-friendly vehicle.
With leases starting as low as $159 per month, the 2025 Hyundai IONIQ 5 is one of the most affordable, efficient EVs on the market. Hyundai has upgraded its best-selling EV with more range (now up to 318 miles), a fresh new style, and a built-in NACS port, allowing you to recharge at Tesla Superchargers.
Hyundai’s new three-row IONIQ 9 is listed for lease as low as $299 per month, and that’s for a nearly $60,000 SUV.
Both the IONIQ 5 and IONIQ 9 are built at the massive new Hyundai Motor Group Metaplant America (HMGMA) in Georgia. Kia’s EV6 and EV9 are assembled at a separate plant in Georgia.
Looking to check one out for yourself? We can help you find vehicles in your area. You can use our links below to view Hyundai and Kia models near you.
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In a move that underscores the growing instability in international e-bike trade, premium electric bike maker Riese & Müller has paused all e-bike shipments to the United States, citing unpredictable steel tariffs as the final straw.
The German brand, known for its high-end urban and cargo e-bikes, informed US dealers this week that it is halting exports for the foreseeable future. While the company pointed to the recent reinstatement of a 50% tariff on certain steel components from overseas, including Germany, the broader issue here seems to be the chaotic and ever-shifting tariff landscape surrounding e-bike imports.
“We need to take a few days to carefully evaluate this situation and its implications before proceeding with further steps,” explained the company in an email to its dealers in the US, according to Bicycle Retailer.
This isn’t the first time tariffs have disrupted the flow of electric two-wheelers into the US. The Trump administration’s Section 301 tariffs targeting Chinese goods initially shook up the industry during the administration’s first term, hitting Chinese-made e-bikes and components with 25% duties before being temporarily suspended. Those tariffs whipped back and forth as exclusions came and went, then became a double whammy after the Trump administration’s “reciprocal” tariffs added even more hardships to e-bike importers in the US. And now, as of July 1, additional steel tariffs have expanded the uncertainty.
What’s unusual in Riese & Müller’s case is that most e-bikes – even expensive ones – use relatively little steel compared to aluminum. Frames, forks, wheels, and most structural components are increasingly made from aluminum alloys or carbon fiber. But with the tariff code system as vague and inconsistently enforced as it is, it seems R&M simply doesn’t want to take the risk of unexpected import costs – or the administrative mess that comes with it, including having to account for how much of a bike is produced from steel components and what the value of those components proves to be.
The impact on the US market will likely be minor in volume; Riese & Müller is a premium but somewhat boutique brand with a loyal yet small customer base. Still, this is a canary in the coal mine. If even premium brands are choosing to step away from the US market over tariff unpredictability, what happens when larger, mass-market brands start running into similar issues?
For now, dealers in the US are being told to sell through existing stock and not take additional orders until the company can determine whether it will be able to continue importing e-bikes into the US. But if the trade war tariffs contineu, this may not be the last premium brand to throw in the towel – at least temporarily.
Electrek’s Take
This isn’t just about one German e-bike brand putting things on pause – it’s a red flag for the industry. While Riese & Müller may be small in terms of US volume, their decision shows how unpredictable tariffs, even on seemingly minor components, can create enough uncertainty to shut down an entire market channel. Most e-bikes are made primarily from aluminum, not steel, but when customs enforcement can interpret tariff codes in vague or inconsistent ways, no brand wants to gamble on a five-figure shipment getting hit with a surprise 25-50% fee.
What’s more concerning is that this adds to a growing stack of trade policy hurdles facing e-bike makers: China-focused tariffs, broader “reciprocal” tariffs, battery import duties, and now steel restrictions hitting European brands too. There’s no coherent strategy here, just a patchwork of protectionist measures that hurt importers, confuse dealers, and raise prices for consumers. If the US wants to promote micromobility and clean transportation, it’s going to need smarter policies than this.
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