Chinese Automotive Industry in Mexico: Prospects and Challenges

Abstract

Since the entry of Chinese vehicle brands such as JAC and BAIC to Mexico between 2014 and 2017, their market growth has become exponential and is largely due to the ability of the eastern country to provide an attractive offer for the Mexican consumer at competitive costs in relation to the other brands. The objective of this research is to analyze the imports and sales of light vehicles in Mexico (electric and gasoline) and their trend. All fractions related to light vehicles were selected as import variables, according to the classification of the Mexican Association of Automotive Distributors (AMDA) in its monthly report. The linear regression method was used to forecast sales as well as imports over 5 years. The results showed a significant growth trend in the Mexican market.