How much do Chinese SUVs cost in Mexico?
The subcompact SUV market is dominated by Asian models. the kia seltos It is the best seller within the segment of the smallest SUV, with 3,291 units sold in the first two months of this year; followed by Nissan Kicks, with 2,980 units sold so far this year.
The prices of these two models move in a price range of 400,000 pesos to the 500,000 pesos.
Despite the fact that in the first two months of this year no model from any Chinese brand appears in the top five within the SUV segment, this seems a matter of time. Chinese manufacturers They have directed efforts to earn a place within it and offering a competitive price is part of the strategy.
Chirey, a brand owned by the Chery group, has decided to compete in this segment with the Tiggo 4 Pro, of which it offers two versions with a 1.5-liter turbo engine and 169 lb-ft. Both have lane departure warning systems, forward collision alert, lane change assist, adaptive cruise control, and automatic braking system. The model’s price range goes from 399,900 pesos and the 467,900 pesosaccording to their website.
MG Motor is also looking for a place within the subcompact SUV segment with the ZS model, which is offered in three versions: an entry price of 399,900 pesos, an intermediate of 440,900 pesos and a top of the range of 468,900 pesos.
Changan, a brand that is marketed under the Motornation heading, offers its CS35 Pus Turbo SUV at 464,900 pesos.
None of these models exceeds 470,000 pesos, while the models that move in the upper part of the segment cost 100,000 pesos more.
And the sedans?
Despite the fact that subcompact SUVs are the most dynamic segment in the Mexican market, Some of the Chinese brands have also opted for sedans. The strategy to position them is to offer models that compete in a segment in motorization and price, but with a size and level of equipment of a higher segment.
Among all, the best-selling Chinese-made in Mexico is the MG5, of the MG brand. Although its engine (1.5 liters and 133 hp) and price (298,900 to 347,900 pesos) are more aimed at competing with subcompact models such as the Kia Rio, Nissan Versa or Chevrolet Onix, its proportions are similar to those of compact sedans, such as the Kia Forte. , Nissan Sentra or Toyota Corolla.
The prices of other models that compete in the subcompact sedan segment, such as the Kia Río or Mazda2, range from 276,000 to 400,000 pesos, while the prices of compact sedans range from 380,000 to 500,000 pesos.
MG moves in the price band of subcompact sedans, but with some equipment items that are seen in the upper segment. This approach allowed him to position himself as the fourth best selling sedan in the first two months of the year, with 4,046 units sold, according to AMDA data.
Why are Chinese cars cheaper?
The ability of Chinese manufacturers to generate large scales allows them to negotiate component and service contracts with their suppliers at competitive prices. It is similar to what happens in a wholesale purchase at a price club like Costco or Sam’s: the more units of a product they carry, the better price can be obtained.
On the other hand, manufacturers have managed to make configurations that allow the addition of attractive elements for the consumer, such as imitation leather seats, large screens, panoramic sunroof and six airbags, compensating with a small engine, to maintain competitive prices.
One of the most expensive components of a vehicle is the powertrain (engine and transmission) and naturally aspirated ones are usually cheaper than turbocharged ones. Chinese manufacturers are betting on naturally aspirated engines, coupled to CVT or manual boxes.
MG, for example, decided to take advantage of the renewal of its ZS SUV to add new security systems and a 10.1-inch screen in its three versions, attributes that its clients requested in the satisfaction surveys carried out by the brand, but it kept the same engine. naturally aspirated.
