Electric pickup trucks in the United States are known to be fairly expensive, but China’s BYD is launching a more affordable model just south of the border in Mexico. The development comes amid an ongoing trade conflict between the U.S. and China over electric vehicles (EVs).
The Biden administration recently quadrupled tariffs on EVs imported from China to over 100%, a move that has been in the works for sometime now. This prompted Chinese automakers to explore alternative avenues to potentially access the U.S. market. China-based electric vehicle companies have been establishing EV factories in Mexico as part of what has been seen as a means to circumvent U.S. restrictions on their vehicles.
In an effort to prevent China from utilizing this prospective backdoor into the U.S., American officials reportedly pressured Mexican authorities into taking away EV incentives to China-based auto companies. That constituted a rollback of low-cost public land deals and tax cuts for Chinese investments in EV production.
However, BYD has still proceeded with the Mexico launch of its hybrid electric truck. The car is dubbed the “Shark” and it is priced at just over $53,000. The truck is even cheaper than the 2024 Ford F-150 Lighting, which was named the Kelly Blue Book’s most affordable electric truck option at $57,000.
The Shark’s affordability is a significant selling point, undercutting offerings from competitors like Chevrolet, Hummer and Rivian by tens of thousands of dollars.
This is the first time BYD has launched a vehicle outside of its home country, with the Shark currently available only to Mexican drivers. The company plans to manufacture 150,000 units of the Shark annually in Mexico. U.S. officials are already talking about setting up additional roadblocks to keep them out of the states.
Following the announcement of tariff increases on Chinese imports, U.S. Trade Representative Katherine Tai indicated the possibility of imposing further penalties on Chinese vehicles manufactured in Mexico.
