Sales of cars produced in China continue to gain ground in Mexico

The growth trend in the sale of automobiles produced in China continues to consolidate in the Mexican market, marking a significant change in consumer preferences.

From January to September 2024, vehicles manufactured in China accounted for 20.1% of total sales in Mexico, up from 19.5% in the same period of 2023. 

This increase not only highlights a steady trend, but also the rapid advance of Chinese brands in a market historically dominated by manufacturers from the United States, Japan and Europe.

The report, prepared by the Mexican Association of Automotive Distributors (AMDA) and supported by the National Institute of Statistics and Geography (Inegi), details that in the first nine months of 2024, 1,079,413 units were sold in Mexico, of which 33.7% were domestically produced, representing 363,969 vehicles.

Imported cars, on the other hand, accounted for 66.3%, equivalent to 715,444 units, with China being the largest foreign supplier with a total of 216,535 units marketed in the country.

The analysis of the evolution of this market reflects a remarkable transformation. In 2018, the share of Chinese cars in Mexico was just 5.8%, which highlights the strong momentum these brands have had in less than a decade.

This growth has been driven in part by the arrival of new brands such as GWM, DFSK and JMC, which have expanded the supply of affordable and technologically advanced vehicles for the Mexican consumer. These brands have not only increased their share in terms of volume, but are also beginning to gain acceptance in terms of perceived quality and value.

The Mexican market offers key strengths for this expansion of Chinese cars. The high demand for affordable vehicles with modern technology is fertile ground for brands that specialize in affordable and efficient models. In addition, growing consumer acceptance of non-traditional brands, as long as they offer value, is a competitive advantage.

The financial support that Chinese brands receive from their government allows them to implement competitive prices and aggressive strategies in foreign markets, such as Mexico, an aspect that favors the penetration of these brands.

Despite the growth of Chinese brands, some consumers still perceive a lack of assurance in terms of durability and after-sales service compared to more established brands. Distrust of quality, while diminishing, remains a barrier to the massive expansion of these brands in certain market segments. In addition, the historical dominance of U.S. and Japanese brands in Mexico means that Chinese manufacturers still face the challenge of building a solid and lasting reputation.

From an opportunity standpoint, the Mexican market presents several strategic advantages for Chinese automakers. The growing demand for electric and hybrid vehicles represents an area of potential growth, as China is a world leader in the production of such vehicles. By capitalizing on this trend and offering affordable options for consumers looking to go green, Chinese brands could gain a significant advantage in a market that is still developing in terms of electric mobility.

In addition, favorable trade negotiations between China and Mexico open the door to a smoother expansion of these brands, especially in terms of import and distribution costs.

However, trade policies between China and other countries, including geopolitical pressure and tensions in international agreements, could negatively impact the cost of imports and limit the expansion of Chinese brands in Mexico.

Competition from local and foreign brands with a greater historical presence in Mexico, especially in the premium and luxury vehicle segment, could also limit the growth of Chinese brands in certain market niches. In addition, global economic uncertainty and changes in consumption patterns could affect demand for new vehicles in general, which presents a risk for all brands, including Chinese brands.

The growing presence of Chinese cars in the Mexican market reflects a structural shift that offers both opportunities and challenges. As Chinese brands continue to gain ground, they will face the challenge of building a long-term perception of quality and reliability, while leveraging cost and technology advantages that allow them to compete in an increasingly competitive environment.

Collaboration: Editorial Auge.