© Reuters. The logo of the BYD Auto company is seen on a BYD SEAL electric vehicle during a BYD store opening at the car dealership Sternauto in Berlin, Germany January 31, 2024. REUTERS/Annegret Hilse

(Reuters) – China’s BYD Co (SZ:) Ltd is planning to set up a new manufacturing plant in Mexico, reported on Wednesday, citing the company’s Mexico head, as the electric vehicle maker aims to establish an export hub to the United States.

BYD, which overtook its biggest rival Tesla (NASDAQ:) Inc to become the top EV maker in terms of sales in the previous quarter, has launched a feasibility study for a new plant in Mexico and is negotiating with government officials at various levels for location and other terms, Nikkei reported.

BYD, which has its sales concentrated in China, aims to expand its global presence and is building new plants overseas in addition to expanding exports from China.

“Overseas production is indispensable for an international brand”, Zhou Zou, country manager of BYD Mexico told Nikkei.

In Latin America, BYD plans to spend 3 billion real($605.94 million) to build a plant in Brazil, Nikkei reported.

($1 = 4.9510 reais)