China has positioned itself as the main car supplier in Mexico, with exports reaching $4.6 billion in 2023, according to data from Mexico’s Secretariat of Economy.
Led by the automaker BYD, China has established itself as the main car supplier in Mexico. Prevented from selling their wares to the United States due to tariffs, Chinese EV manufacturers have explored other markets to sell their high-tech cars. However, as Mexico establishes itself as a key market for Chinese electric vehicles, officials in Washington fear that Mexico could be used as a “back door” to access the US market.
This was to be expected. China has a huge surplus of electric vehicles destined for the foreign market. A lot of the major economies have already imposed tariffs. Chinese companies have to sell their cars somewhere else and Latin America is a huge potential market.
It’s an interesting problem. On the one hand, a huge offering of cheap options is a great way to make the switch to an electric car fleet. So good for the customers and the environment.
On the other hand Chinese companies can produce against very low costs and less environmental and labour rules, so it destroys car manufacturers elsewhere, causing a lot of people to lose their jobs.
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China has positioned itself as the main car supplier in Mexico, with exports reaching $4.6 billion in 2023, according to data from Mexico’s Secretariat of Economy.
Led by the automaker BYD, China has established itself as the main car supplier in Mexico. Prevented from selling their wares to the United States due to tariffs, Chinese EV manufacturers have explored other markets to sell their high-tech cars. However, as Mexico establishes itself as a key market for Chinese electric vehicles, officials in Washington fear that Mexico could be used as a “back door” to access the US market.
Full story: https://www.wired.com/story/china-conquers-mexican-automotive-market-and-the-us-is-worried/
This was to be expected. China has a huge surplus of electric vehicles destined for the foreign market. A lot of the major economies have already imposed tariffs. Chinese companies have to sell their cars somewhere else and Latin America is a huge potential market.
It’s an interesting problem. On the one hand, a huge offering of cheap options is a great way to make the switch to an electric car fleet. So good for the customers and the environment.
On the other hand Chinese companies can produce against very low costs and less environmental and labour rules, so it destroys car manufacturers elsewhere, causing a lot of people to lose their jobs.