BYD Geely Nissan Mercedes Mexico Plant Acquisition: China EV Giants Eye Aguascalientes Facility

On February 12, BYD Geely Nissan Mercedes Mexico plant acquisition has progressed into an advanced evaluation phase, with major Chinese automakers shortlisted for the Aguascalientes manufacturing facility in Mexico. The site, previously operated under a joint venture structure between Nissan Motor Co. and Mercedes-Benz, is becoming available as both OEMs recalibrate their global manufacturing networks. This transition reflects a broader industrial rebalancing, where Chinese manufacturers are accelerating overseas production localization to mitigate tariff exposure, reduce logistics risk, and reinforce regional supply chain integration.

Strategic Significance of the Aguascalientes Plant

The Aguascalientes facility offers an installed production capacity of approximately 230,000 vehicles annually, positioning it as a strategically valuable asset within Mexico’s established automotive manufacturing belt. As Nissan advances structural realignment measures and Mercedes-Benz transfers GLB production to Hungary, the plant is being vacated, creating a rare brownfield acquisition opportunity. For prospective buyers, the asset eliminates the capital intensity, regulatory lead time, and ramp-up uncertainties typically associated with greenfield investments.

Production Transition and Capacity Realignment

Mercedes-Benz’s decision to shift GLB output to Hungary aligns production with core European demand centers, optimizing logistics and regional cost structures. Concurrently, Nissan’s operational restructuring focuses on consolidating global production footprints to enhance utilization rates and streamline fixed-cost absorption. These synchronized strategic moves have accelerated the divestment timeline of the joint venture plant, elevating its attractiveness to global OEMs seeking immediate entry or scale expansion in North America.
Shortlisted contenders include leading Chinese automotive groups such as BYD and Geely, alongside Vietnam-based VinFast. Earlier reported expressions of interest from Chery and Great Wall Motor underscore the competitive intensity surrounding the asset, reflecting Asia-based OEMs’ increasing focus on Mexico as a production gateway.

Trade Pressures Driving China Automakers in Mexico

The BYD Geely Nissan Mercedes Mexico plant acquisition discussions are unfolding against a backdrop of rising trade friction. The United States has implemented 25% tariffs on vehicles manufactured in Mexico, significantly impacting export-oriented production models. In 2024, Mexico’s total vehicle output reached approximately 4 million units, with 2.8 million exported to the U.S. market. However, export volumes contracted by nearly 3% in 2025, highlighting the tangible effect of tariff escalation and shifting trade policy dynamics.

Year	Total Production (Units)	Exports to U.S. (Units)	Export Trend
2024	4,000,000	2,800,000	Baseline
2025	—	—	~3% decline in exports

Mexico as a Strategic Export Hub

Despite tariff headwinds, Mexico continues to hold structural advantages as a manufacturing platform due to its mature supplier ecosystem, extensive trade agreements, and geographic proximity to the United States. Chinese automakers have methodically expanded their commercial and distribution footprint in the country, collectively securing roughly 10% market share. For BYD and Geely, acquiring an operational facility significantly compresses time-to-market, enhances production localization, and strengthens access not only to North America but also to broader Latin American markets.

• Immediate access to a fully operational facility with high annual capacity.

• Established workforce and supplier base within Mexico’s automotive cluster.

• Enhanced resilience against geopolitical trade fluctuations.

• Stronger positioning for Latin American market penetration.

If finalized, the BYD Geely Nissan Mercedes Mexico plant acquisition could materially alter Mexico’s competitive automotive landscape. Beyond expanding the presence of China automakers in Mexico, the transaction would exemplify how global OEMs are recalibrating production geographies in response to tariff regimes, regionalization pressures, and supply chain fragmentation in an increasingly complex trade environment.