The Chinese automaker was exploring setting up a factory at three potential locations in the North American country for local production of cars.

Chinese automaker BYD has halted any investment in the group's planned plant in Mexico until at least after the US presidential election in November, as a possible change in US trade policy could alter the companies' timetables.

BYD was exploring the construction of a plant in three possible locations in the North American country for local car production. One of the areas being studied was the city of Guadalajara, where several technology companies have been located in the last decade. The Chinese group arrived in March to send a delegation to inspect the site.

BYD Executive Vice President Stella Li also visited Mexico City in February for the launch of the automaker’s Dolphin Mini model, while senior management gathered in a BYD-sponsored box at the Formula E Mexico City E-Prix in January.

BYD's decision follows a similar strategy launched in July by another electric vehicle manufacturer, in this case the American company Tesla, which halted the construction of its gigafactory while awaiting the results of the elections in the neighbouring country.

At the time, Tesla announced different plans to build a plant in the northern state of Nuevo León with an estimated investment of up to US$ 10 billion (9.059 billion euros) in several phases.

Mexico could be one of BYD's key overseas production hubs, alongside plants it is currently building or already operating in Brazil, Hungary, Turkey and Thailand.

For the moment, BYD has reported that the vehicles manufactured in Mexico will be destined for local consumption, although the free trade agreement with the United States and Canada arises as a commercial strategy to the imposition of tariffs on the import of electric vehicles by Washington.