Jorge Vallejo, director of the Chinese automotive company BYD: “We want to democratize the use of electric cars in Mexico”

The Chinese automaker Build Your Dreams (BYD) has stepped on the accelerator in Mexico. Less than two years after its foray into the country with the sale of imported units, the leading electric car company has already raised its sights with ambitious goals in Mexican territory. Eight launches this year, more than 50,000 cars to be sold in 2024 and the jewel in the crown: the start of construction of a manufacturing plant with the capacity to produce up to 300,000 vehicles. Although Chinese managers have not yet revealed the amount of investment or the final location of the new factory, the executive director of BYD in Mexico Jorge Vallejo (Mexico City, 51 years old) gives some guidelines on what is on the horizon.

Between meetings with the Mexico City team and upcoming trips to China, Vallejo makes time in his busy schedule to talk about the plans of a company that boasts, without giving specific sales figures in Mexico, triple-digit growth per month. per month. Questioned about the evident proximity of this new Mexican plant to the US market and future plans to access the United States, Vallejo insists, again and again, that he is completely focused on consolidating the sales, distribution and production lines in Mexico: “The manufacturing issue will be 100% focused on the Mexican market,” he says.

Ask. Almost four months after arriving at this position, how did you receive the direction?

Answer. Very proud to represent the number one selling brand of new energy vehicles in the world. In this first quarter I had the opportunity to launch two new models, last January we launched Song Plus DM-i, in February, Mini Dolphin, and in April the King vehicle will be released and we are already preparing the global launch of a new model. Due to BYD's vertical integration, we practically manufacture 100% of the product, except for the windshields and tires, the technology, design and equipment is developed and manufactured by us, which allows us to have an accessible product in the Mexican market. Mini Dolphin is the brand's most economical vehicle, with a selling price of 350,000 pesos.

Q. What is your bet for the next launch?

R. It is the first PHEV sedan with DM-i technology, with 100% electric mode. It can be a first vehicle, a car for medium-sized families, it can be a work vehicle, a platform vehicle and it has a price of around 498,000 pesos.

Q. At this dizzying pace, how many launches will be made this year in the country?

R. We had planned between six and eight launches nationwide this year.

Q. How many units has BYD come in Mexico?

R. We are doubling sales month after month. I am growing 100% month after month.

Q. To what do you attribute this accelerated pace of growth in the Mexican market?

R. I don't think it's just the appetite for an electric car, it's because of the BYD brand, because of the engineering, because of the design, because of the technology, the quality of the product and the accessibility in price. BYD's growth worldwide has been overwhelming, we have grown 147.8% in the month of March compared to last year, selling more than 300,000 units per month worldwide, breaking the barrier of seven million new energy vehicles sold. .

Q. What is the progress in car manufacturing from Mexico?

R. It was already announced by our boss Stella Li, the management in Mexico of having a manufacturing plant that will surely be announced in the following weeks or months the final location. Work is being done to supply the Mexican market. A market that presents a universe of 1.5 million annualized units and we are focused on this manufacturing being for the Mexican market. For this year I am planning to sell 50,000 units in Mexico, opening 50 distribution points nationwide.

Q. What is the progress to achieve this goal?

R. April is going to be the fastest month of distribution openings. This month, points of sale are inaugurated in Aguascalientes, two in Monterrey, one in Guadalajara and one in Mexico City, plus the 18 that are already being added in the channel.

Q. It has been made public that they are evaluating states such as Nuevo León for the construction of this manufacturing plant…

R. Yes, we have spoken with various States that have the infrastructure, the business environment, the workforce, the training and, of course, the manufacturing panorama in Mexico has been analyzed.

Q. How much money will be invested in this new plant?

R. I do not have that information, but in our first stage we have planned a capacity for 150,000 manufactured units, moving on to a second stage of another 150,000 units.

Q. Will construction of this new plant begin this year?

R. Yes, surely yes.

Q. What will be the challenges to continue with this ambitious sales and manufacturing plan in Mexico?

R. The issue of training, labor and management. That is why we are betting on this country, we consider that Mexico has sufficient qualities in infrastructure, at the port level, labor and design that allows us to have this growth.

Q. However, the prices to purchase an electric car in Mexico are still very high compared to the option of an internal combustion vehicle. Have you evaluated lowering prices to increase the penetration of your units?

R. Lowering prices further is no longer possible, we are being extremely aggressive and innovative in the issue of positioning, in price and not by having an affordable price we are sacrificing other elements such as the digital issue, safety, air bags, ABS brakes, come on, all equipment is involved. Each of our models has all the safety and design standards worldwide and the consumer is seeing it. BYD's function is to democratize the use of electric vehicles in Mexico, so that we can reach various segments that previously did not have access to an electric vehicle.

Q. At the end of last year, BYD surpassed Tesla in the sale of electric cars globally, do you think they will be able to maintain this trend this year?

R. Leadership is not shared and BYD leadership will be here for many years.

Q. How interested is BYD Mexico in sending cars manufactured in the country to the United States?

R. Today we are focused on the Mexican market, we are growing at a rapid rate at triple digits month after month, we are doubling sales, we are launching new products. We are focused 100% on the Mexican market both for marketing, the creation of the distributor network and, of course, the manufacturing issue that will be 100% focused on the Mexican market.

Q. And in the medium term, wouldn't you be interested in entering the US market?

R. We are focused today on the Mexican market, I do not have the capacity today to be able to neglect this highly competitive market with 50,000 units to be delivered that makes me focus all my batteries, all my effort, on the Mexican market.

Q. What do you think of the accusations from American manufacturing associations, who stated that it was a risk that Chinese cars would arrive in their country via Mexic
o?

R. I haven't had time to review the reviews, we are focused on the Mexican market.

Q. Do you plan for BYD Mexico to become a hub automotive for Central and South America?

R. Surely it is part of the strategy that the bosses are developing, for me the function and the focus that they have given me is Mexico, grow in Mexico, develop Mexico.

Q. On this path of goals, are you worried about Tesla's upcoming landing in Santa Catarina, Nuevo León?

R. Any brand that pushes with new technology, design and management are more than welcome and I think BYD's technology is incomparable.

Q. Do you think it is necessary for the Government to implement incentives to increase the use of electric cars in Mexico?

R. It must be understood that it is a new business model, which can not only be accompanied by a fiscal, administrative or economic incentive, I would rather look for accessibility to electrical supply centers, both in residence and in buildings.

Subscribe to the EL PAÍS Mexico newsletter and to whatsapp channel and receive all the key information on current events in this country.

_