Chinese Cars Shake Up Mexico's Luxury Market

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Automotive Noticias

Chinese Cars,Luxury Vehicles,Mexico

The growing popularity of Chinese sport utility vehicles and pickup trucks has led to a significant drop in sales of luxury vehicles in Mexico, traditionally dominated by brands like Mercedes-Benz and BMW. Consumers are drawn to Chinese vehicles due to their comfort, technology, and affordability.

Detail of a Chinese-made Changan car at a dealership in Naucalpan, Mexico, December 7, 2024. Sales of luxury vehicles in Mexico registered a significant drop in 2024, in the face of a stronger presence of Chinese-made vehicles preferred by consumers. — AFP picas a first-time user .

According to the Mexican Association of Automotive Distributors , the high-end segment of the market registered a sales drop of 8.1 per cent from January to November. In contrast, Motornation, which sells the BAIC, JMC and Changan brands in Mexico, saw an 8.8 per cent increase in sales in the first 11 months of this year, while those of Jetour rose 131 per cent, it said.They have brought stiff competition to the pickup truck segment, with many of the features of high-end models offered by premium brands, the association’s president Guillermo Rosales told AFP.

Asian brands also benefited from an exemption from import tariffs on electric vehicles that was in effect in Mexico from 2020 until October 1.As in other Latin American countries, Mexicans are becoming more used to seeing Chinese brands on the streets that were unknown to them until about five years ago.

As well as the design and comfort, the “competitive” price was another factor, said Reyes, who paid around 550,000 pesos — roughly US$27,000 . During his campaign, US President-elect Donald Trump suggested that China was building car factories in Mexico to sell vehicles in the United States.

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