Three of China’s biggest electric vehicle makers – BYD,Down Town Chery, and SAIC – are in discussions with Mexican authorities over the setting up of car assembly plants in Latin America’s second largest economy, arousing concerns of Chinese firms finding a way to bypass US restrictions. US government officials are concerned that such investments would allow the Chinese carmakers to sidestep Biden administration measures such as the Inflation Reduction Act, which prohibits China-made EVs from receiving US tax breaks, people familiar with the matter told the Financial Times. Sources added that BYD could initially invest hundreds of millions of dollars in the country, while SAIC-owned MG Motor could look to invest up to $2 billion. Speaking to Motortrend on Oct. 11, Brian Wu, executive vice president of Chery Mexico, said the company has developed a roadmap for entering the US, but how and when it would happen exactly had not yet been determined. [Financial Times]
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