Chinese manufacturer of electric vehicles BYD Co., Ltd. BYDD BYDDF The company has reportedly narrowed its shortlist of potential locations for a new manufacturing facility in Mexico to three states. The company is currently reviewing various funding proposals from each of these states.

Jorge Vallejo, general manager of BYD in Mexico, told Reuters that the company was reviewing the candidate countries’ recent proposals, which included numerous benefits such as tax incentives, land offers, management support and preferential pricing, the media house reported.

“With a plant, it’s not just about space, but also logistics, all the development, the urban infrastructure that is created, water, gas, everything that is needed for an automobile plant,” he said. “There are many elements, including logistical ones, that we are analyzing together with them,” Reuters quoted Vallejo as saying.

Also read: Tesla’s Chinese rival BYD aims to electrify Pakistan: opening a new factory and new showrooms for electric cars

The Mexican government is under pressure from the United States and is distancing itself from Chinese automakers by withholding incentives such as cheap public land or tax cuts for the production of electric vehicles, Reuters reported in April, citing Mexican officials.

Vallejo did not disclose which states are offering incentives, but Stella Li, head of BYD Americas, mentioned in May that the plant would be centrally located in Mexico.

Following the launch of BYD’s Song Pro plug-in hybrid SUV in Mexico, Vallejo said the company had not yet decided which models would be produced at the new plant.

The plant will initially produce 150,000 units, with a further 150,000 units to be added in a second phase, bringing the total capacity to 400,000 to 500,000 units in a few years, the report said.

Vallejo stressed that the plant will serve the Mexican market and that there are currently no plans to enter the U.S. market, Reuters added.

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