, though.) So it’s a bit concerning that the company is experiencing some speed bumps back home in China.
According to InsideEVs, BYD has announced that it will slow down production and delay the expansion of two new manufacturing facilities in Shenzhen and Chongqing. The company cites “uncertainties” in the global market, along with a need to optimize its current production capabilities.
It’s not all bad news, though. BYD says that it still plans to invest heavily in new energy vehicles (NEVs) and batteries, and that it remains committed to its goal of becoming a global leader in the EV industry. The company has also seen strong sales in the first half of 2025, so it’s not like things are falling apart. But it’s worth keeping an eye on the situation.
90%: Tariffs Won’t Stop Mexico From Becoming An Auto Powerhouse
Photo by: BYD
Mexico has long been a key player in the global automotive industry, with a strong manufacturing base and a growing reputation for quality and efficiency. Despite recent challenges, such as the COVID-19 pandemic and ongoing trade tensions with the U.S., Mexico’s automotive sector continues to thrive.
According to InsideEVs, Mexico is poised to become an even bigger player in the automotive world in the coming years. The country’s proximity to the U.S. market, its skilled workforce, and its competitive labor costs make it an attractive destination for automakers looking to expand their production capacity.
Even the threat of tariffs and trade barriers hasn’t dampened Mexico’s prospects. The country has worked to diversify its trade relationships and reduce its dependence on any single market, ensuring that its automotive industry remains resilient in the face of economic uncertainty.
With major automakers like Ford, General Motors, and Volkswagen already operating plants in Mexico, and new investments from companies like BMW and Toyota on the horizon, Mexico is well-positioned to cement its status as a global automotive powerhouse.
That wraps up today’s edition of Critical Materials. Be sure to check back tomorrow for more industry news and analysis.
about Tesla’s Robotaxi service in Austin, the NHTSA’s investigation into the service, BYD’s production slowdown in China, and Mexico’s rising star status in the automotive world.
Tesla’s Robotaxi service in Austin has faced scrutiny from the National Highway Traffic Safety Administration (NHTSA) after videos surfaced showing the autonomous vehicles exhibiting erratic and inconsistent behavior. The NHTSA is requesting more information about the incidents, which could lead to a formal investigation. Many have pointed out that this is more of a beta test than a full launch, but the safety of drivers, pedestrians, and cyclists in Austin is still a concern.
BYD, a Chinese auto giant, has announced a slowdown in production and the delay of expansion plans for two new manufacturing facilities in Shenzhen and Chongqing. The company cites uncertainties in the global market and a need to optimize current production capabilities. Despite this, BYD remains committed to investing in new energy vehicles (NEVs) and batteries, and maintaining its position as a global leader in the EV industry.
Mexico’s automotive industry continues to thrive, despite challenges like the COVID-19 pandemic and trade tensions with the U.S. The country’s proximity to the U.S. market, skilled workforce, and competitive labor costs make it an attractive destination for automakers. Even the threat of tariffs has not deterred Mexico’s automotive sector, as the country works to diversify its trade relationships and attract new investments. With major automakers already operating in Mexico and new investments on the horizon, the country is poised to become a major player in the global automotive industry. This advantage is even more pronounced in the high-tech auto industry, where specialized skills are required and labor costs make up a larger portion of the overall production cost.
Additionally, Mexico’s proximity to the U.S. market is a key factor in its attractiveness as a manufacturing location. The ability to quickly and cost-effectively transport vehicles and parts across the border is crucial for automakers looking to serve the North American market efficiently.
Furthermore, Mexico’s relative policy and regulatory stability provide a level of certainty for automakers and suppliers. This stability allows companies to make long-term investments in Mexico without fear of sudden changes in regulations or trade policies that could disrupt their operations.
Overall, despite the challenges posed by tariffs and trade tensions, Mexico’s high-tech auto industry is well-positioned to continue its growth and remain a key player in the global automotive market. With a skilled workforce, strategic location, and stable regulatory environment, Mexico offers significant advantages for automakers looking to produce next-generation vehicles efficiently and competitively.
One option could be to require Tesla to implement a phased rollout of their robotaxis. This would involve starting with limited deployment in specific regions or cities where the technology has been thoroughly tested and proven to be safe. By gradually expanding the deployment as more data and experience are gathered, regulators can ensure that the technology is ready for widespread use without putting the public at risk.
Another approach could be to require Tesla to implement additional safety measures before allowing their robotaxis on the road. This could include requirements for redundant systems, fail-safe mechanisms, and advanced driver monitoring to ensure that the vehicles can safely operate in a wide range of conditions. By setting strict safety standards, regulators can ensure that self-driving cars meet the highest levels of safety before being allowed on the road.
Ultimately, the goal should be to strike a balance between safety and innovation. While it’s important to encourage the development of new technologies like self-driving cars, it’s equally important to ensure that these technologies are safe for public use. By implementing a cautious and phased approach to the rollout of robotaxis, regulators can help ensure that these vehicles are safe and reliable before they become a common sight on our roads.
So, as Mexico’s auto sector continues to thrive due to its low labor costs, the future of self-driving cars in the U.S. will depend on a careful balance of innovation and safety. By setting strict standards and implementing a cautious rollout, regulators can help ensure that self-driving cars are not only the future of transportation but also a safe and reliable option for consumers.
