Chinese electric vehicle giant BYD (OTC: BYDDY) has kicked off 2025 with impressive momentum, reporting robust growth in both production and overseas sales.
In March alone, the company sold 72,723 vehicles overseas, while its installed capacity of new energy vehicle (NEV) power and storage batteries reached 20.347 GWh—a signal of strong demand and market position in the global EV space.
The strong operational performance is reflected in the stock price. BYD shares are currently trading at $97.60, up 43% year-to-date, outperforming many peers in the EV sector.
However, even as BYD sets new records, rising geopolitical tensions are casting a shadow over its U.S. ambitions.
The company’s expansion plans now face fresh uncertainty following the implementation of President Donald Trump’s 25% blanket tariff on all imported vehicles, which took effect on April 2. While the tariffs pose challenges for all foreign automakers, some industry experts believe Chinese manufacturers may be better positioned to weather the impact.
Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, noted that Chinese brands are less exposed to the U.S. market than their global peers, giving them a degree of insulation that could evolve into a long-term competitive advantage.
Mexican expansion on hold
The most immediate fallout is seen in Mexico, where BYD had been preparing to establish its first North American manufacturing facility, a $600 million project expected to create up to 10,000 jobs. Those plans are now on hold.
What was once a budding China-Mexico economic relationship has cooled considerably, with both governments pulling back. Mexican President Claudia Sheinbaum is now reportedly working to avoid tensions with Washington, Mexico’s largest trading partner.
The caution isn’t one-sided. China’s commerce ministry has also delayed approval of BYD’s Mexico plant, citing concerns that advanced technology could leak into U.S. supply chains. according`to the Financial Times,
BYD’s pivot to Europe and other global markets
Despite the setback in Mexico, BYD’s global strategy is far from derailed. The company continues to expand aggressively into Europe and other markets where Chinese automakers face fewer regulatory hurdles.
In an interview with Automobilwoche earlier this month, a BYD executive revealed that the company is considering building a third factory in Europe within the next two years, in addition to the two plants already under construction in Hungary and Turkey. While the exact location has yet to be disclosed, the move signals BYD’s intent to deepen its footprint across the continent.
Is BYD still a buy?
Despite near-term political headwinds, BYD remains a compelling long-term investment. The company’s production scale, vertical integration, and technological edge especially in battery manufacturing set it apart from competitors. While Trump’s tariffs may delay its entry into the U.S. market, they do not derail the company’s broader international strategy.
Featured image via Shutterstock
