(Photo : BYD website)

Chinese electric vehicle manufacturer BYD has temporarily halted its plan to open a manufacturing facility in Mexico, South China Morning Post reported, citing people familiar with the matter. 

According to the report, the EV maker could reconsider the decision after the upcoming elections in the United States, as shifting American policies could have an impact on all businesses. 

BYD Pauses Factor Plans

The report added that BYD had looked for three locations in Mexico to open a new manufacturing facility. 

However, the company has now decided to postpone these plans, until the US elections which will witness a presidential race between Donald Trump and Kamala Harris. 

People who wished to stay anonymous further noted that BYD's paused factory plans may still be revived or could change. 

Mexico is widely considered one of the strategic locations for foreign carmakers due to the nation's proximity to the United States. The country is also part of a North American free trade agreement with the US and Canada.

Several EV giants including Tesla had previously considered Mexico to build manufacturing facilities in the nation. The Elon Musk-owned firm announced plans to build the plant in the northern state of Nuevo Leon, with an investment of $10 billion over several phases.

In July, however, Tesla postponed its plans for a mega-manufacturing plant until the end of the United States elections. 

BYD Denies Claims

However, BYD, in a statement to Bloomberg said that it has not canceled its plans to develop manufacturing plants in Mexico. 

"We continue working to build a factory with the highest technological standards for the Mexican market, not for the United States market, nor for the export market," the company's executive vice-president Stella Li told Bloomberg. 

She also added that Mexico still remains a crucial market for BYD.