BYD "open to" acquiring another automaker, building cars in Canada – report

BYD is considering opening a factory in Canada, and could even acquire another automaker as it looks to expand its global reach.

The Chinese automotive giant already sells vehicles in Mexico and is now looking to set up shop in the United States’ other next-door neighbour, Canada.

BYD executive vice president Stella Li told Bloomberg the automaker is studying the potential for a Canadian factory, though it hasn’t made a decision yet.

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“I don’t think a [joint venture] will work,” added the high-ranking BYD executive, confirming BYD would want to own and operate any Canadian factory in fitting with its modus operandi of keeping much of its supply chain in-house.

Canada has become more favourable to Chinese automakers, recently announcing a system that will bring a quota of Chinese electric vehicles (EVs) that can be imported with significant tariff reductions.

This came after the US imposed tariffs on Canada, despite US President Trump having signed a trade agreement – the United States-Mexico-Canada Agreement (USMCA) – with the nation, which came into effect in 2020.

BYD remains shut out of the US market, due to significant tariffs. Per Bloomberg, Ms Li said BYD was shelving any ambitions it may have had for a US market entry, with the executive calling it a “complicated environment”.

US President Trump has, however, expressed a willingness for Chinese brands to build factories in the US, much to the chagrin of industry groups representing American automakers.

“If they want to come in and ​build a plant and hire you and hire ​your friends and your neighbors, ​that’s great, I love that,” he told the Detroit Economic ‌Club in January.

BYD has already looked to bypass tough tariffs on Chinese imports in Europe by opening a factory in Hungary, with another coming soon in Turkey.

One way BYD could crack the US market is by buying an existing automaker, and while Ms Li said that no deal is currently close on this front, BYD is evaluating potential acquisitions.

“We are open to every opportunity we have. We will see what benefits us,” she said.

Such a move would harken back to earlier this century, when various Chinese automakers acquired foreign brands. SAIC Motor brought MG into its fold and even briefly owned a controlling stake in SsangYong, while Geely bought Volvo from Ford.

Geely later acquired Lotus, and has increased its stake in Aston Martin. BYD itself established a joint venture with Mercedes-Benz to form the Denza brand, only to later buy it out.

It’s unclear which automakers would be potential acquisition targets for BYD, which since 2022 exclusively produces EVs and plug-in hybrids (PHEVs).

There’s been greater collaboration between Chinese and non-Chinese automakers due to the advancements the Chinese auto industry has made in electric vehicle (EV) technology, as well as in-car tech.

BYD supplies batteries to companies such as KGM and Toyota, and has even jointly developed vehicles with the latter.

BMW and GWM have partnered on a platform used by the Mini brand, Volkswagen will use platforms and technology from Xpeng, Audi has debuted a vehicle on a platform developed with SAIC, and Mazda is exporting two vehicles co-developed with its Chinese joint-venture partner Changan to various global markets.

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