On the streets of the country it is increasingly common to see electric or hybrid vehicles. They are from recently arrived brands that attract locals and strangers: these are Chinese vehicles, which have begun to increase their sales and mark the arrival of more companies to the country.
The best-known Asian firm, up to this point, is BYD (Build Your Dreams), whose penetration into the world market, including the Mexican market, was noted in January of this year, when it was announced that, for the first time, it surpassed Tesla. , owned by millionaire Elon Musk, in the sale of electric vehicles.
In October of this year, the Shenzhen-based firm reported that it obtained revenues of 28.24 billion dollars at the end of the third quarter, which implied an increase of 24 percent compared to the same period of the previous year and exceeded 25 1.2 billion dollars reported by Tesla in the same period.
Currently, it is estimated that in the Mexican market there are around 25 brands from China and one of the reasons why their presence is increasingly noticeable is due to the price, since their cost, compared to their competitors, is 15 percent. lower, especially in the luxury car market.
Among the brands that are increasingly common to see on the streets of the country are MG, JAC, BYD, Chirey, Omada, JMC, BAIC, Haval, Ora, Tank and GWMPoer.
Guillermo González, president of the Mexican Association of Automotive Distributors (AMDA), indicated that before the pandemic, Chinese companies already had a presence in the Mexican market, with brands such as JAC or BAIC, and in 2020 came the boom with the entry of MG.
“At that time, these companies were able to cover the demand of the Mexican market, when there were no new cars in a scenario in which the product supply was affected by the pandemic… The positive performance they have had among Mexican consumers is related to the portfolio of products they offer,” he said in an interview.
Result of the phenomenon of company relocation, better known as nearshoringthere were companies that animaron
to announce the construction of its plants in Mexico, as is the case of BYD, which in June of this year said that it was in an analysis process.
Banks, new allies
Chinese automobile companies have not only filled the eye
to the Mexican consumer, they have also done the same with the banks, since these financial agents have become their ally in granting credit.
BBVA Mexico, the bank with the greatest presence among those operating in the country, has more than 20 contracts with Chinese companies to provide financing to consumers, and according to Alejandro Cárdenas Bortoni, general director of business and government banking at the bank , more than 17 percent of new financing to people to buy a vehicle is for Chinese cars.
Santander is another of the banks that is committed to Chinese vehicles, and among its most important agreements is the association with BYD and GAC Motors.
According to the latest AMDA report, from January to November, sales in the domestic market of products manufactured in China represent 20.1 percent, while those of brands of origin from the Asian country are 9.1 percent of the total.