This phenomenon has increased the number of cars manufactured in China circulating on the streets of Mexico. Between January and August of this year, a total of 166,203 Chinese-manufactured vehicles were sold, equivalent to 19.3% of the local market share, that is, approximately two out of every 10 cars sold, according to Inegi data.
The percentage rises to 20.8% If we add the 12,840 vehicles sold by JAC in the periodwhich are finished being assembled at the automaker’s plant in Ciudad Sahagún, Hidalgo.
Guillermo Rosales, president of the Mexican Association of Automotive Distributors, points out that this coincides with the transformation that the automotive industry is experiencing in China. “It has gone from focusing primarily on meeting domestic demand to going international in recent years.”
China became the world’s largest vehicle manufacturer in 2012, surpassing the United States. Initially, this production focused on meeting domestic demand, but over time, the Asian country became a key global player, thanks to its large-scale production capacity and low manufacturing costs.
Some manufacturers, such as General Motors, They were pioneers in importing vehicles from that country to other markets. Since 2016, the American brand began selling the Chinese-made Buic Envision SUV in Mexico, this being the only vehicle from that country marketed in the local market that year, according to Inegi data.
But after the pandemic, more manufacturers turned to Chinese manufacturing to stock up on inventory. In addition to General Motors; Ford, Stellantis, Kia and BMW sell ‘made in China’ cars in the country. Soon, Volvo will also add an electric model imported from the Asian country to its range. Furthermore, with the transition from internal combustion vehicles to electric vehicles, China is taking advantage of a significant opportunity. The country accounted for about 70% of global electric vehicle production last year, according to data from EV Volumes.
“In Mexico, the most affordable electric vehicle available is the E-WAN Cross of the sEV brand, manufactured by the Chinese company Dayun, with a starting price of 379,900 pesos, followed by the E10X from JAC.”
Before the pandemic, from January to August 2019, the sale of 53,279 vehicles imported from China in Mexico was recorded, which was equivalent to 6.2% of the total vehicles sold in the country during that period, according to data provided by Inegi. However, this figure has experienced exponential growth. In the past year, China has established itself as the main automobile supplier to Mexico, displacing Mexico’s trading partners, such as the United States and Canada, and nations such as India and Brazil, which previously held prominent positions.
China was the country that recovered the fastest from the semiconductor supply crisis, which affected the global automotive industry during the Covid-19 pandemic.
While at the end of last year, some regions such as North America and Europe were still facing a decline of up to 20% in vehicle production due to chip shortages, the Asian giant had already overcome this challenging outlook, according to data provided. by the consulting firm IHS Markit.
Furthermore, with the transition from internal combustion vehicles to electric vehicles, China is seizing a significant opportunity. The country accounted for about 70% of global electric vehicle production last year, according to data from EV Volumes.
In Mexico, the most affordable electric vehicle available is the E-WAN Cross of the SEV brand, manufactured by the Chinese company Dayun, with a starting price of 379,900 pesos, followed by the E10X from JAC, with a price of 439,900 pesos.