- BYD is exploring building a plant in Canada and remains open to potential deals to acquire global rivals.
- In January, Canada agreed to exempt up to 49,000 Chinese-built EVs annually from a 100% tariff.
BYD is actively considering building a plant in Canada and remains open to acquiring a more established global automaker, according to a Bloomberg report on Friday.
The Shenzhen-based Chinese new energy vehicle (NEV) maker is studying the Canadian market for a potential manufacturing facility, BYD executive vice president Stella Li said in an interview with Bloomberg, adding that no decision has been made yet.
BYD would want to own and operate such a factory, and she doesn't think a joint venture model will work, Li said.
While Canada has been courting investment from Chinese automakers, its government is pushing for joint ventures with Canadian companies, which conflicts with BYD's philosophy, Bloomberg noted.
In January, Canada agreed to exempt up to 49,000 Chinese-built electric vehicles annually from a 100% tariff. This is part of a shift away from the country's previous policy of keeping Chinese cars out.
Under this EV-for-canola agreement, these vehicles will be subject to a 6.1% most-favored-nation tariff rate.
Li also signaled in the Bloomberg interview that BYD may be interested in taking over a legacy automaker.
She noted that while no deal is currently close, BYD is evaluating potential assets. The company is open to every opportunity and will see what benefits them, she said.
Li didn't mention any potential acquisition targets, but such a move wouldn't be unprecedented. Geely Holding bought Volvo Cars more than a decade ago, the report noted.
She also said the company is ramping up its first European passenger vehicle hub in Hungary and evaluating a second project in Turkey.
In the interview, Li also confirmed that BYD is examining options to enter competitive motorsport, including Formula One, according to the report.
While cautioning that no final decision has been made, she suggested that a foray into the world's most elite racing series would align with BYD's tech-first identity.
BYD's NEV sales in February stood at 190,190 units, plunging 41.09% year-on-year in a sixth consecutive month of decline, according to data released earlier this month.
Despite the pressure on overall sales, overseas markets remain a rare bright spot. BYD exported 100,600 NEVs in February, surpassing its domestic sales for the first time.
BYD aims to achieve 1.3 million vehicle sales in overseas markets in 2026, representing a growth of about 24%.
