Chinese-Made Vehicles Gain Traction in Mexican Market
Chinese-manufactured vehicles are increasingly making their mark in the Mexican market, with shipowners based in China finding Mexico to be an attractive destination for their products. Official figures show that 20% of light vehicles sold in Mexico last year were imported from China, totaling 273,592 units and marking a 50% growth compared to the previous year.
While most vehicle imports from China currently come from Western brands with manufacturing plants in the country, there is a rising presence of specifically Chinese brands in Mexico. Names such as Changan, JMC, Chirey, Jaecoo, and Jetour have entered the Mexican market in recent years.
Mexico, known as the seventh largest automobile producer in the world, exported 3.3 million units in 2023, a 15% increase from the previous year. With 90% of Mexican production destined for export, the country imports vehicles to supply its domestic market, with 66% of vehicles sold in Mexico being imported models.
The Mexican Association of Automotive Distributors (AMDA) President Guillermo Rosales is optimistic about the domestic market’s growth potential, citing economic expansion and potential drops in interest rates. Rosales predicts a 7% increase in vehicle sales for the year, with expectations of reaching 1.5 million units sold.
Chinese electric car manufacturer BYD is eyeing a new production plant in Mexico, with states like Nuevo León, Jalisco, and Hidalgo offering potential locations. The plant’s annual capacity of 150,000 cars aims to boost sales in the local market.
AMIA Executive President José Zozaya notes the impact of Chinese cars on the Mexican market, pointing out increased competition in pricing, attractive models, designs, and extended warranties. The interest of Chinese companies in Mexico reflects a broader trend of Asian producers seeking new markets in the Middle East and Latin America.
For Fernando Turner, a businessman and former Secretary of Economy of Nuevo León, China’s interest in Mexico signals a strategic move to access the US market via Mexico. However, challenges remain in refining the auto parts supply chain to avoid delays and effectively penetrate the US market.
In the evolving landscape of the Mexican automotive sector, Chinese-made vehicles are reshaping market dynamics and opening up new possibilities for both consumers and industry players.