Chinese Vehicles Gain Momentum in Mexican Market
Vehicles manufactured in China are accelerating their pace in the Mexican market, with shipowners in Chinese territory finding Mexico to be an attractive market for expansion. According to official figures, 20% of the light vehicles sold last year in Mexico were imported from China, totaling 273,592 units and representing a 50% growth compared to the previous year.
While the majority of vehicles imported from China are from Western brands with manufacturing plants in the country, the presence of Chinese brands in Mexico is also on the rise. Brands like Changan, JMC, Chirey, Jaecoo, and Jetour have started making their mark in the Mexican automotive market.
Mexico, known as the seventh largest automobile producer in the world, exports 90% of its production, primarily to the United States. In 2023, the country exported 3.3 million units, a 15% increase over the previous year. Additionally, Mexican automotive companies assembled 3.7 million vehicles last year, marking a 14% growth from the year before.
Guillermo Rosales, president of the Mexican Association of Automotive Distributors (AMDA), explains that Mexico imports vehicles to meet the demands of its market. Sixty-six percent of vehicles sold in Mexico are imported models, while the remaining are assembled within the country. Car sales in Mexico saw a 24.4% increase in 2023, with the market reaching 1.3 million vehicles.
Chinese electric car maker BYD has shown interest in expanding its presence in Mexico by establishing a new production plant in the country. States like Nuevo León, Jalisco, and Hidalgo have offered spaces for BYD to set up a plant with an annual capacity of 150,000 cars. This move is expected to boost the company’s sales in the local market.
The incursion of Chinese car manufacturers in Mexico is part of a global trend, with Asian producers seeking new markets in regions like the Middle East and Latin America. The competition from Chinese brands has led to more competitive pricing and attractive models in the Mexican market.
While the interest from Chinese companies in Mexico is growing, challenges remain in refining the auto parts supply chain to avoid delays. The Mexican automotive industry welcomes the interest from Chinese companies like BYD and sees it as an opportunity for growth and job creation.
The Mexican automotive industry awaits the potential investments from Chinese companies like BYD, hoping that they will generate positive impacts on the market. As the competition in the Mexican market heats up, consumers can expect more choices and innovation from both Western and Chinese brands.