Are Chinese Automakers Leveraging Mexico to Break into the North American Market?
By Leonard Ling & Bertrand Rakoto
Chinese automakers in Mexico have captured nearly 10% of light vehicle sales in only 6 years. Although they remain far from legacy OEMs from Europe, United States, Japan, and South Korea, they have shown an unprecedented growth in the Mexican market. Among the Chinese OEMs selling in Mexico, SAIC MG, Chery Group (including Chirey and Omoda), JAC Motors sold a total of almost 120,000 vehicles in 2023, representing 8.9% of the total light vehicle sales last year.
Mexico is the world’s seventh-largest in terms of light vehicles production, and the fifth-largest for components. According to the USMCA agreement, companies with factories in Mexico that are sourcing a minimum of 75% of vehicle components in North America can export to the United States duty-free. This positions Mexico as a key entry point for North American automotive investments.
