Chinese Auto Manufacturers in Mexico
There are a number of companies that have recently expressed their interest in becoming Chinese automotive manufacturers in Mexico. It is anticipated that in the near future five such firms will announce their intention to commit significant investment capital aimed at servicing the growing Mexican domestic marketplace for motor vehicles.
Changan and ByD Auto Co. Ltd. are set to lead the way
Among those entities that will soon be in Mexico are prominent companies such as Changan Automobile and ByD Auto Co. Ltd. While Changan Automotive is headquartered in Chongqin and is a state-owned company, ByD Auto is based in Xian, Shaanxi Province and is the automotive subsidiary of the Chinese multinational ByD Co. Ltd. It is notable that Changan is one of China’s “Big Four” automobile producers. The remaining Big Four auto firms in the country are the FAW Group Corporation, the Dongfeng Motor Corporation, and the BAIC Group.
Increasingly companies that wish to become Chinese automotive manufacturers in Mexico see the nation as a promising market in which to sell both gas and electric-powered vehicles.
Recently, Jose Luis Bernal, Mexico’s ambassador in China, noted at an event that took place in Mexico that China is among the top three of his country’s trading partners, behind the United States and Canada. It is estimated that in 2019 trade between Mexico and the Asian economic powerhouse was valued at approximately US $100 billion. This figure represents a 10% increase in bilateral commerce when compared to the previous year.
Given the growth in the commercial relationship between the two countries, now is an optimal time for Chinese automotive manufacturers in Mexico to increase their offerings. In addition to domestic sales, China sees Mexico as a fertile investment environment for its passenger vehicle manufacturers because of its position as a prominent global export platform. The country has negotiated 13 active free trade agreements that ensure the duty-free treatment of its products in 50 countries. This feature of the economy makes the country attractive to Chinese automotive manufacturers in Mexico.
As a Chinese auto manufacturer in Mexico, what models will Changan sell ?
Changan Automotive already has existing manufacturing operations in several countries in the region. Latin American nations in which the company produces and sells its vehicles include Colombia, Chile, and Argentina. In these markets, Changan concentrates its efforts on selling its SUVs. Among the products that Changan Automobile will most likely offer in the Mexican market are the:
It is a camper style hatchback, similar to Renault Stepway or JAC Sei 2. It has a 1.5-liter 100 hp 106 lb atmospheric engine, as well as a manual transmission or a dual-clutch automatic. It includes four airbags, ABS brakes, and electronic stability control.
It is a subcompact SUV, similar to the Chevrolet Trax, with a size of 4.33 m. It has an atmospheric engine of 1.6 liters and is capable of generating 115 hp and 112 lb-ft. It includes a manual box of five speeds or an automatic of six. It has four airbags, ABS and stability control.
It is one of the brand’s newest SUVs. It measures 4.55 meters, so it is placed in the Honda CR-V and Hyundai Tucson segment. It goes with a 1.5-liter turbo engine, capable of generating 141 hp and 165 lb-ft, associated with an automatic transmission. It carries ABS, stability control and six airbags.
Which ByD models could be sold in Mexico?
ByD has not consolidated manufacturing operations in the same way as Changan in Latin America, although it does have a presence in some countries, such as Peru and Colombia. The company intends to enter the electric vehicle market in Mexico.
With Jetta size and Rio price, the F3 is a sedan for families looking for plenty of space. It has a 1.5-liter 107 hp atmospheric engine and has a five-speed manual transmission or dual-clutch automatic transmission.
It is a low-cost hybrid sedan, capable of reaching 100 km/h in 5.9 seconds. It has a range of 70 km in fully electric mode. According to ByD, the hybrid system has 300 hp and 353 lb-ft. It has 9 airbags, ABS brakes and stability control
This is a small electric SUV with 93 hp motor and two ranges: 305 or 400 kilometers, depending on the version. Includes front airbags and ABS brakes. Its equipment includes a touch screen, four speakers, LED daytime running lights and 16″ wheels.
This is the Chinese manufacturer’s response to Ford EcoSport to which it shows great similarity. It is equipped with a 105 hp atmospheric motor and a six-speed automatic transmission. It includes ABS brakes, traction control and 16″ wheels.
This vehicle competes in the Honda CR-V segment. The Song features a 1.5-liter turbo engine, capable of generating 155 hp and 177 lb-ft. It uses manual or automatic dual-clutch transmission and includes stability control, rear camera, and cruise control.
ByD Song 2G
It’s the premium version of the Song. It can accommodate five passengers and is equipped with a 1.5-liter turbo engine, 155 hp, and 177 lb-ft.
Chinese automobile companies JAC Motors currently has operations in Mexico
In addition to companies that will soon join the future ranks of Chinese auto manufacturers in Mexico, the Hefei, Anhui province-based JAC Motors currently has operations in-country. JAC is a state-owned entity. The firm established itself in a joint venture with Giant Motors Latin America in the city of Sahagun, Hidalgo in 2017. JAC entered the Mexican market initially with only its Sei S2 (S2) and Sei S3 (S3) models. Since 2018 they have been manufacturing their J4 sedan. This is the first vehicle in this segment to be marketed in the country by the brand.