China is delaying approval for plans by Chinese vehicle manufacturers and byd to produce cars in Latin America, as American tariff fuel fuel trade and economic uncertainties, as two people with knowledge of the case said.
Gali and Renault stated that in February they reached an agreement for Gali to use the French vehicle manufacturer’s production facilities in Brazil and to take a minority stake in the Renault business in the Latin American country.
BYD announced plans for a Mexican plant in 2023 and said that last year would announce where the factory would be located by the end of 2024.
People said that approval from Beijing has taken more time than anticipated for both projects and Chinese state planner told the representatives of the vehicle manufacturers that there would be technology transfer risks in the schemes, without expansion, people said.
Officials of the country’s auto industry associations also warned in a separate conversation with the automakers that US President Donald Trump’s tariffs would create uncertainty in global trade and economies, and complicate their investment risks and returns, they said.
People warned that the discussion was still liquid and subject to change.
A third source said that the officers became more strict and alert on investment by Chinese vehicle manufacturers abroad, but not at the point where they would stop accepting the application completely. The source said that the review schedule was extinguished and they would ask enterprises to present more materials.
Gali said in a statement that her cooperation with Renault in Brazil was successful, which had no delay or additional investigation, given that its EVS launched the local level this week, exactly 52 days after the signing of the agreement was signed.
Byd, Renault and the State Planner of China, National Development and Reforms Commission did not immediately respond to the requests of comments.
The Financial Times stated in March, citing sources that China was delaying approval for Beddi’s Mexican plant, as the technology developed by the EV manufacturer could leak in the United States.
Approval was delayed as Chinese vehicle manufacturers have announced a plan to build more abroad in recent years, as markets like Europe impose tariffs on cars exported from China.
Gali, who owns the founder Volvo and Polstar brands, is demanding partnerships to expand abroad. It is working closely with Renault to produce cars with galli technologies in South Korea.
Gely on Wednesday unveiled Gealy EX5 for the Brazilian market and said that the model would go on sale from July, initially in 18 cities with 23 dealerships. This did not give a time -line for local production.
While BYD still makes more than 90 percent of its sales in China, it is constructing passenger vehicle factories in Hungary, Mexico, Thailand, Uzbekistan and Brazil to increase investment in its major foreign markets and marketing abroad.
