Chinese Brand Cars See 30% Sales Surge in Mexico in H1, Capturing 17% Market Share

In the first half of this year, Chinese-brand vehicles sold 137,525 units in Mexico, a nearly 30% year-on-year increase, accounting for 17% of the country’s total new vehicle sales—up significantly from 14% during the same period last year. Geely led the growth among Chinese automakers, followed closely by MG, Changan, and Chery. BYD remained the Chinese brand with the highest market share, though its sales dipped slightly to 33,969 units from 34,606 units a year earlier. Data shows that Chinese brands have expanded rapidly in the Mexican market: their market share was less than 1% in 2020, rose to 7% in 2022, and reached 17% in the first half of this year. However, Luis Rosendo Gutiérrez, Mexico’s Undersecretary of Foreign Trade, cautioned that these sales figures are misleading, as automakers imported large volumes of vehicles ahead of a tariff hike implemented at the beginning of the year, leading to high local inventory levels. He emphasized that imports of Chinese-brand vehicles fell by 43% year-on-year in the first five months of this year, indicating that the additional tariffs have effectively curbed the influx of Asian-made vehicles. In January, Mexico imposed a 50% tariff on imported vehicles from China and other Asian countries, officially citing the need to protect domestic jobs. Some analysts, however, view the move as an effort to address U.S. concerns. Washington worries that Mexico could become a backdoor for Chinese automakers to enter the North American market, potentially disrupting the $1.2 trillion North American auto industry. This issue has become a focal point in ongoing negotiations to update the USMCA (United States-Mexico-Canada Agreement). Guillermo Rosales, Executive President of the Mexican Automotive Distributors Association, noted that although market supply is becoming saturated and some local brands are experiencing declining sales, Chinese automakers are still likely to continue gaining market share—albeit at a slower pace. He believes Chinese carmakers will likely absorb the high tariff costs themselves to retain access to this critical market.