Chinese automakers are on track to control 20% of Mexico’s domestic auto market after selling more than 80,500 vehicles there in the first 8 months of this year.
According to the Mexican Association of Automotive Distributors (AMDA), Chinese car imports have increased by 62.6% during 2023 so far, growing their market share from 5.7% to 19.4% compared to the previous year.
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Leading Chinese brands that currently dominate the Mexican market include MG Motors with 35,322 units sold in the first eight months of 2023, followed by Chery with 26,174 units, and JAC with 12,840 units. AMDA president Guillermo Rosales while speaking at a press conference, said:
“The arrival of Chinese brands increases the number of available offerings and has contributed to the updating of the inventory available in our market.”
According to consultancy J.D. Power Mexico, at least seven more Chinese automakers are now entering the market, including Omoda, Jetour, GWM, and Geely Autos. J.D. Power’s director, Gerardo Gómez said:
“We know that there are 7 more confirmed brands that are going to start operations in Mexico and this will give us, not an exponential growth, but a substitution, a fight for the market.”
This expanding competition is exemplified by BYD, which just one year ago began looking into the Mexican automobile market. The Chinese company already delivers trucks to companies like Bimbo, Lala, Cemex, and FEMSA in addition to producing cars for the ride-hailing app DiDi.
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According to Stella Li, president of BYD Americas, it recently debuted the “Dolphin” electric hatchback for the Mexican market, where it anticipates selling up to 30,000 units in the upcoming year.
BYD is also considering setting up a manufacturing plant in Mexico, as revealed by Li. While speaking to a local newspaper, she said:
“We will import the vehicles at first, but we have plans to produce vehicles in Mexico. We are doing the research, but we haven’t decided the location yet.”
The entry of new Chinese brands is seen as of of the key aspects of the dynamism in Mexico’s auto market. In order to stay competitive, historically well-known brands in Mexico like Nissan, Volkswagen, and General Motors are compelled to release new models.
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According to the National Statistical Agency (INEGI), sales of new cars in Mexico grew by 23.8% last month, reaching 113,873 units, the strongest year-on-year growth Mexico’s automotive industry has seen in the month of August for 23 years. With such rapid growth, Chinese automakers have a fantastic chance to seize a sizable portion of another important international market.
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com
