BYD, Geely Shortlisted for Nissan-Mercedes Mexico Factory Acquisition

Chinese automakers’ market share in Mexico surged from near zero in 2020 to around 10% in 2025.

Recently, insiders revealed that China’s two major automotive giants, BYD and Geely, have been shortlisted for the final bidding stage of the Nissan-Mercedes-Benz joint venture plant in Mexico, with Vietnamese EV maker VinFast ranking third.

It is learned that among the nine companies that initially expressed acquisition interest, at least two other mainstream Chinese automakers, Chery and Great Wall Motor, as well as SAIC Motor, were included.

The core asset of this bidding—the COMPAS plant, located in Aguascalientes, central Mexico—was jointly built by Nissan and Mercedes-Benz in 2017 at a cost of $1 billion, with an annual production capacity of up to 230,000 vehicles.

This soon-to-be-closed plant reflects the deep-seated predicament of Mexico’s automotive industry.

According to data from the Mexican Automotive Industry Association (AMIA), Mexico produced 4 million passenger vehicles in 2024, of which 2.8 million were exported to the United States, showing a high dependence on the U.S. market. However, since the U.S. imposed a 25% tariff on Mexican-made vehicles in March 2025, the industry has been under continuous pressure. In 2025, auto exports to the U.S. declined by nearly 3%, and approximately 60,000 automotive jobs were lost.

According to the plan, the plant was originally scheduled to officially close in May 2026. Mercedes-Benz has decided to transfer production of the GLB model to Hungary to avoid the 25% U.S. tariff on Mexican vehicles; meanwhile, Nissan, due to sluggish sales of the Infiniti QX50 and QX55 and its global strategic contraction, will simultaneously shut down this plant and another factory in Mexico City.

Behind the bidding campaign is the explosive growth of Chinese automakers in the Mexican market.

Data from consulting firm AutoForecast Solutions shows that the market share of Chinese brands in Mexico has surged from nearly zero in 2020 to about 10% in 2025, with Mexico’s annual car sales at approximately 1.5 million vehicles.

BYD’s global sales have increased more than tenfold since 2020, with 2.25 million pure electric vehicles sold in 2025, surpassing Tesla by 600,000 units; Geely also exceeded 4 million vehicles in sales last year, on par with Ford.

The Aguascalientes state government stated that most of the nine automakers that expressed interest produce hybrid and electric models, primarily targeting the Mexican and Latin American markets.

It is worth noting that BYD had previously planned to build a new plant locally but was hindered by lengthy approval processes. In contrast, acquiring an existing plant that began production in 2017 does not require Mexican government approval, significantly shortening the timeline for entering the North American market.