A potential sale of a Nissan plant in Aguascalientes, Mexico, has drawn interest from several Asian automakers, including BYD, Geely, and VinFast, as these companies seek to expand their manufacturing footprint in the region. The facility, slated for closure in May 2026, has become the focus of a competitive bidding process involving nine companies, ultimately narrowing down to these three finalists, according to Reuters.
Nissan announced last year its plans to gradually shut down the Aguascalientes plant as part of a global restructuring. The 230,000-unit capacity facility is attractive to competitors due to its strategic location, established industrial connections, and the support the state of Aguascalientes has provided to the automotive sector for over three decades. While other companies, including Chery and Great Wall Motor, initially expressed interest, they did not advance to the final stage of bidding.
The potential transaction comes at a time of heightened trade tensions between Mexico and the United States ahead of the upcoming USMCA review in July. U.S. President Donald Trump has repeatedly accused Mexico of facilitating the entry of Asian products into the U.S. Without proper tariffs, a concern particularly relevant to the Mexican automotive sector. Despite these potential barriers, Mexico remains a long-term investment destination for Asian automakers due to its domestic market appeal and potential as an export hub for Latin America and the United States under the USMCA framework.
BYD initially considered building a new plant in Mexico in 2023, with a proposed investment of $1 billion and potential locations in Jalisco or Nuevo León. However, Trump’s election and his protectionist policies toward China put those plans on hold. The renewed interest in the Nissan facility suggests a shift in strategy. Ignacio Martínez Cortés, coordinator of the Laboratory of Analysis in Commerce, Economy and Business at UNAM, noted that these automakers are primarily focused on securing a foothold in the domestic market, rather than immediate export opportunities.
BYD, which has at times surpassed Tesla in global sales, has navigated various tariff barriers to expand its presence internationally, including in Mexico. As of 2026, the Mexican government, under President Claudia Sheinbaum, will impose a 50% tariff on vehicles imported from countries without trade agreements with Mexico, including China and Vietnam. This decision, initially seen as an attempt to align with U.S. Trade policy, now appears to create an opportunity for increased Asian investment.
Chinese automotive brands currently hold a 9.4% share of the Mexican market, according to data from Inegi. However, the actual market share of some brands, like BYD, is unknown as they do not publicly report their sales figures. The growing global success of the Chinese automotive industry is paralleled by its increasing interest in establishing a presence in Mexico.
