Yadea plans to invest $80M in a Mexican plant |

Yadea, the Chinese manufacturer of electric bicycles and motorcycles, as well as scooters, plans to invest US$80 million in Mexico to install an assembly plant, as part of its internationalization, where it also has Brazil in its sights.

This was announced by Francisco Javier Fu y Fuster, Yadea’s Latin American Sales Director in an interview with El Economista, referring that in 2023, 40 million electric motorcycles were sold in China and 1 out of every 3 were Yadea, so“we want to come to Mexico, because we see a very important potential market”.

With eight combustion and electric two-wheeler factories, six in China, one in Indonesia and one in Vietnam, the company has now chosen Mexico to open its first plant in the Americas and intends to export from there to the United States and the rest of Latin America.

Yadea has had a presence in Puebla, Mexico, since 2020 through a distributor, but as of November, four points of sale will be opened in Mexico City, another four in Guadalajara, Jalisco and others in Leon, Guanajuato, Morelia, Michoacan, and Toluca in the State of Mexico, for a total of 15 Yadea agencies, said Francisco Javier Fu.

With the growth of motorcycle sales in Mexico, Yadea aims to reach 10,000 units in the first year, including combustion and electric motorcycles, as well as scooters.

According to data from the Mexican Association of Motorcycle Manufacturers and Importers (AMFIM), motorcycle sales in Mexico could reach 1.4 million units by 2024, 90% of which come from abroad. Last year, the value of motorcycle imports escalated to US$578 million, which represents 132% more compared to the value of 2013. At the end of 2023, the number of motorcycles in circulation in Mexico was seven million 784,486 units, 14.3% higher than in 2022 – equivalent to almost one million more motor vehicles – and 315% higher than a decade ago.

Therefore, Yadea has identified that the Mexican market has the potential to increase sales, take a percentage of market share and take advantage of the opportunity to assemble from Mexico.

“We are contemplating three years up to 80 million dollars at the beginning, as I commented it would be an assembly plant”, then, he said, then we would proceed to the plant with welding, painting, we would bring in all the processes and suppliers from China. We would even consider establishing engine factories as well,”he added.

Source:

https://www.eleconomista.com.mx/empresas/china-yadea-planea-invertir-80-millones-dolares-planta-motos-20241002-728451.html