China Conquers Mexico's Automotive Market, and the US Is Worried

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Led by the automaker BYD, China has established itself as the main car supplier in Mexico. The US worries China could use Mexico as a “back door” to sidestep tariffs and gain footing in the US market.

China has positioned itself as the main car supplier in Mexico, with exports reaching 4.6 billion dollars in 2023, according to data from Mexico's Secretariat of Economy. BYD, the Chinese automaker, surpassed Honda and Nissan to position itself as the seventh largest automaker in the world by number of units sold during the April to June quarter. This growth was driven by increased demand for its affordable electric vehicles, according to data from automakers and research firm MarkLines.

' Concerned about the potential impact on domestic automakers, the US has raised tariffs on Chinese-made electric vehicles to 100 percent. Canada is also considering implementing its own tariffs on Chinese-made vehicles. In July, the European Union began imposing additional tariffs on Chinese electric vehicles and, on Tuesday, proposed to increase the rate to 36.3 percent. Faced with this situation, BYD has decided to build a new factory in Turkey to avoid these tariffs.

 

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