Korean Media: Chinese Cars Surge from 1% to 17%, Dominating Mexico Market!

On August 18, South Korea's daily newspaper Business Korea published an article stating that despite high tariffs imposed by the Mexican government on Asian automobiles, sales of Chinese cars in Mexico have surged significantly during the first half of this year.

Data from the Mexican Automotive Dealers Association shows that new vehicle sales of Chinese brands in Mexico reached 137,525 units in the first half of this year, a 27.7% increase compared to 107,712 units in the same period last year.

As a result, the market share of Chinese car brands in Mexico’s new vehicle market rose from 14% last year to 17% this year, achieving significant growth within just a few years—this share was less than 1% as recently as 2020.

At the beginning of this year, Mexico imposed a 50% tariff on automobile imports from Asia, including China, in an effort to protect jobs and appease the United States. The U.S. has long been concerned that Chinese cars might bypass regulations by entering through Mexico.

Nevertheless, strong sales of Chinese vehicles persisted, driven by pre-tariff inventory shipments and Chinese automakers’ policies to suppress price increases.

In terms of brands, Geely saw the highest growth rate, followed by MG, Changan, and Chery. BYD leads among Chinese brands in sales volume, remaining at the top despite a slight decline.

Although Chinese car sales remain robust, the Mexican government believes the impact of the tariffs is gradually becoming evident.

Luis Rendondo Gutiérrez, Deputy Minister of Trade: “It's not about the sales figures; what matters is that these tariff measures are hindering imports of Asian vehicles.”

Meanwhile, experts predict that the expansion of Chinese car market share will continue in the short term.

Guillermo Rosales, President of the Mexican Automotive Dealers Association, forecasts that even if the growth rate slows down compared to recent rapid expansion, the market share of Chinese brands in Mexico will still keep rising.

Original Article: toutiao.com/article/1873841240293379/

Disclaimer: The views expressed in this article are those of the author alone.