Chinese automakers BYD, Geely and Vietnam’s VinFast have been shortlisted to acquire the Nissan-Mercedes-Benz car plant in Aguascalientes, Mexico.
The three companies were selected from nine bidders, which also included Chinese manufacturers Chery and Great Wall Motors, Reuters reported, citing sources.
Chinese automakers are pursuing the site as they seek production capacity outside China and U.S. tariffs disrupt auto trade in Mexico.
The Aguascalientes plant, which opened in 2017 and has an annual capacity of 230,000 vehicles, is closing after Nissan ended production of the Infiniti QX50 and QX55 and Mercedes-Benz moved GLB production to Hungary.
The closure is reportedly part of a wider restructuring at Nissan, which has also closed another plant in Mexico while Mercedes-Benz moves production of the next-generation GLB to Europe.
Government sources told Reuters that Mexico’s federal government has no power to block the sale but is encouraging local authorities to delay approvals for Chinese auto investments while it negotiates a North American trade arrangement with the United States.
Mexico last year imposed 50% tariffs on Chinese cars and goods, a move seen as aligning itself with Washington but also encouraging Chinese automakers to build local manufacturing plants.
BYD and Geely’s interest underscores the rapid expansion of China’s auto industry.
Mexico’s auto industry has faced increasing pressure since the United States imposed a 25% tariff on Mexican-made cars in March 2025.
The measure led to a nearly 3% drop in exports to the United States in 2025 and about 60,000 job losses across the industry last year, according to industry and government data cited by the news agency.
Overseas factory projects require permission from China’s Ministry of Commerce, which the report quoted as saying was aware of Aguascalientes’ proposal and had raised no objections.
“BYD, Geely and VinFast Bid for Nissan-Mercedes Mexico Plant – Report” was originally created and published by Just Auto, a brand of GlobalData.
The information on this website is included in good faith and for general information purposes only. It does not constitute advice on which you should rely and we make no representations, warranties or guarantees, express or implied, as to its accuracy or completeness. You must obtain professional or expert advice before taking, or refraining from, any action based on the content on our website.
