(March 13): BYD Co, China’s largest car manufacturer, is actively considering building a plant in Canada while also keeping its options open to acquire a more established global automaker.
The Shenzhen-based automaker is studying the Canadian market for a potential manufacturing facility, although no decision has been made, executive vice-president Stella Li said in an interview, adding that BYD would want to own and operate such a factory.
“I don’t think a JV will work,” Li said, speaking during a visit to Sao Paulo.
While Canada has been courting investment from Chinese carmakers, its government is pushing a joint venture with one or more Canadian companies. In January, Canada agreed to exempt as many as 49,000 Chinese-built electric vehicles (EVs) annually from a 100% tariff imposed in 2024, part of a shift away from the country’s previous policy of keeping Chinese cars out.
Li also signalled BYD may be interested in taking over a legacy carmaker at a time when some American, European and Japanese rivals are struggling to stay competitive in global markets — stretched by investments in their gas-only and electric vehicle operations. BYD has grown to prominence by producing both all-electric and hybrid gas-electric vehicles.
“We are open to every opportunity we have,” she said, noting that while no deal is currently close, her company is evaluating potential assets. “We will see what benefits us.”
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Li didn’t mention any potential acquisition targets, but such a move wouldn’t be unprecedented — China’s Zhejiang Geely Holding Group Co bought Volvo Cars more than a decade ago. More recently, some Western automakers have stepped up efforts to tap Chinese carmakers for technological assistance and production capacity.
Stellantis NV is considering tapping EV technology from its Chinese partner Leapmotor and is exploring deals with Chinese carmakers for investment in Europe. Ford Motor Co has held discussions with Geely about shared capacity in Europe.
BYD has had joint ventures in the past, but its current “go-it-alone” philosophy reflects a commitment to its own efficiency measures such as a vertical integration strategy to keep much of its supply chain in-house.
See also: BYD shares surge the most in 13 months on overseas sales orders
US is ‘complicated’
For now, the world’s biggest EV maker is shelving any ambitions it may have for entering the US, which Li called a “complicated environment.” Chinese automakers have faced steep tariffs and a ban on connected car technology in the US, which has effectively kept out most mass-market models made in China.
Instead, BYD is focused on markets where it can apply its “Brazil model,” using the marketing and sales success it found in South America in other regions such as Europe. Li said the company is ramping up its first European passenger vehicle hub in Hungary and weighing a second project in Türkiye. That comes as part of a broader push overseas.
BYD’s overall sales for the first two months of the year fell 36% to 400,241 units, although exports gained momentum and the company now aims to sell 1.3 million cars abroad in 2026.
Li said two recent launches by BYD earlier this month — the latest generation of its blade batteries and ultra-fast flash charging architecture — will help reverse that decline in sales.
In “just less than a week, we saw a lot of customers who never buy EVs come to us,” she said.
In Brazil, BYD plans to install 1,000 ultra-fast chargers by the end of 2027 at a cost of more than 500 million reais (US$97 million or $122 million), Alexandre Baldy, BYD’s senior vice-president, told Bloomberg.
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Li confirmed a Bloomberg News report earlier this week that BYD is examining options to enter competitive motorsport, including Formula One and endurance racing. While she cautioned 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.
“Don’t be surprised,” she hinted. “We are still working on” it.
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