When these four people finally set foot in Mexico, the team explored the competition and took note of the success stories – as Shi calls them – of MG and Chery, owner of the Chirey and Omoda brands. About five months later, in April of this year, GWM was ready to organize the formation of a local team to prepare the launch of the brand in the country.
Shi highlights that Mexico is a large market, selling around 1.2 million new vehicles a year. This fact, combined with the production capacity of almost three million vehicles in the country, makes it a strategic market for any company that aspires to be global. Shi compares this potential with other countries and regions, highlighting the importance of being present in key markets to build a truly global brand.
“In Europe we identified five key nations: France, Germany, England, Spain and Italy. Each of them with sales of around one or two million vehicles. However, in Western and Southern Europe, countries like Portugal and Hungary do not contribute significantly to the market compared to these top five. Something similar happens in each region. In America you have Brazil with two million and Chile with around 300,000. You see the difference? And, of course, there is the United States, which is the second largest market for vehicle sales in the world. Market size is definitely crucial. If you aspire to build a global market, it is imperative to have a presence in these key markets. Otherwise, how can globality be achieved?” says Shi.
A global brand
GWM’s commitment to the Mexican market is part of a long-term strategy that has been developing for three years, when the company started manufacturing operations in Thailand, India and bought a factory from Daimler in Brazil. Shi was in charge of closing these negotiations.
GWM’s Overseas Director emphasizes that the company’s philosophy is to be “built by the world and for the world, with the locals and for the locals.” This strategy involves not only exporting vehicles but also investing locally. In this sense, Shi reveals that GWM is considering the possibility of having a plant in Mexico, from where they could export to the United States and Canada.
If you have the dream of being a global car brand you have to be in Mexico
Parker Shi, vice president of GWM.
Local investment is seen as crucial for the long-term sustainability of the operation. Shi emphasizes that, although they may currently be competitive in the market, the vision for the future involves being a local company with local investors.
“We believe that if we could not have production in Mexico, we would not be able to continue with the long-term operation,” said Shi, who explained that the firm is exploring the possibility of acquiring a factory in Mexico and that they have already started talks with local governments. .
“We maintain a solid relationship with the Mexican ambassador to China (Jesús Seade), who has been kind enough to visit us on one occasion. This link is fundamental, and we always work actively to strengthen our connections with the local governments of the markets where we have a presence to move forward as quickly as possible,” says Shi.
Seade appeared in a video during the launch of GWM in Mexico, where he said that work was being done so that the Chinese manufacturer could have local production of vehicles.