BYD eyes Canada plant, open to acquiring global automaker as EV expansion accelerates

Chinese electric-vehicle giant BYD is considering building a manufacturing plant in Canada while also keeping the door open to acquiring an established global automaker, as it accelerates its international expansion amid intensifying competition in the electric-vehicle market.

The Shenzhen-based company is currently studying the Canadian market for a potential factory, though no final decision has been made, Executive Vice President Stella Li said in an interview during a visit to Sao Paulo.

Li said BYD would prefer to fully own and operate any manufacturing facility in Canada rather than partner with local firms.

“I don’t think a JV will work,” she said.

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Canada exploring Chinese EV investment

Canada has been actively courting investment from Chinese carmakers as it looks to build its EV manufacturing ecosystem. However, the government has been encouraging joint ventures with domestic companies as part of its strategy to develop local industry.

In January, Canada agreed to exempt up to 49,000 Chinese-built electric vehicles annually from the 100 percent tariff imposed in 2024. The move marked a partial shift from its earlier policy that effectively shut Chinese EVs out of the Canadian market.

If BYD proceeds with the plan, it would mark a significant step for the world’s largest EV maker as it seeks deeper access to North American markets.

Open to buying a legacy automaker

Li also indicated that BYD may consider acquiring a legacy automaker as several traditional manufacturers in the US, Europe and Japan struggle with the costly transition from petrol-powered vehicles to electric mobility.

“We’re open to every opportunity we have,” Li said, adding that the company is evaluating potential assets even though no deal is currently close. “We’ll see what benefits us.”

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She did not name any potential acquisition targets, but the strategy would echo earlier moves by Chinese auto groups. More than a decade ago, Zhejiang Geely Holding Group acquired Volvo Cars, turning the Swedish brand into a major global EV contender.

Meanwhile, several Western automakers are increasingly turning to Chinese firms for technology partnerships and manufacturing capacity. Stellantis NV has explored using EV technology from its Chinese partner Leapmotor, while Ford Motor has discussed shared production capacity in Europe with Geely.

‘Complicated’ US market

For now, BYD is shelving any ambitions of entering the US market, which Li described as a “complicated environment.”

Chinese automakers face steep tariffs and restrictions on connected-vehicle technologies in the US, effectively blocking most mass-market models manufactured in China.

Instead, BYD is focusing on expanding in regions where it has seen stronger traction, particularly in South America and Europe. The company is building its first European passenger-vehicle production hub in Hungary and is also evaluating a second facility in Turkey as part of its global manufacturing push.

Exports become key growth driver

Despite its rapid global expansion, BYD’s overall vehicle sales fell 36 percent in the first two months of the year to 400,241 units. However, exports have gained momentum, and the company now aims to sell 1.3 million vehicles overseas in 2026.

Li said new technologies unveiled earlier this month — including the latest generation of BYD’s blade batteries and an ultra-fast flash-charging architecture — are expected to help revive sales.

“In just less than a week, we saw a lot of customers who never buy EVs come to us,” she said.

Expansion in Brazil and motorsport ambitions

BYD is also strengthening its presence in Brazil, where it plans to install 1,000 ultra-fast charging stations by the end of 2027 at a cost of more than 500 million reais ($97 million), according to company executives.

The automaker is also examining a potential entry into global motorsport, including Formula One and endurance racing, Li confirmed. While no final decision has been made, she suggested such a move would fit BYD’s technology-driven brand identity.

“Don’t be surprised,” Li said. “We’re still working on it.”

With inputs from agencies.