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.
The Chinese automaker BYD surpassed Honda and Nissan to position itself as the seventh largest automaker in the world by number of units sold during the April to June quarter. This growth was driven by increased demand for its affordable electric vehicles, according to data from automakers and research firm MarkLines.
The company’s new vehicle sales rose 40 percent year over year to 980,000 units in the quarter—the same quarter wherein most major automakers, including Toyota and Volkswagen, experienced a decline in sales. Much of BYD’s growth is attributed to its overseas sales, which nearly tripled in the past year to 105,000 units. Now BYD is considering locating its new auto plant in three Mexican states: Durango, Jalisco, and Nuevo Leon.
Foreign investment would be an economic boost for Mexico. The company has claimed that a plant there would create about 10,000 jobs. A Tesla competitor, BYD markets its Dolphin Mini model in Mexico for about 398,800 pesos—about $21,300 dollars—a little more than half the price of the cheapest Tesla model.
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That tariff-free access is part of the US-Mexico-Canada Agreement (T-MEC), an updated version of the North American Free Trade Agreement that, as of 2018, eliminated tariffs on many products traded between the North American countries. Under the treaty, if a foreign automotive company that manufactures vehicles in Canada or Mexico can demonstrate that the materials used are locally sourced, its products can be exported to the United States virtually duty-free.
MAGA strikes again
Well per person its 45k per worker but household numbers are fine too, although 35% of houses have two cars so that means they need to double their car budget in most cases.
I’m assuming the demand is there because the federal government has said they are concerned people might buy so many cheap BYDs it would drive american car companies out of business. Why would they care if noone wanted them?
I’m assuming the demand is there because the federal government has said they are concerned people might buy so many cheap BYDs it would drive american car companies out of business. Why would they care if noone wanted them?
An electric small car still is a small car, which a Ameridans don’t want the sales numbers show that. Further people seeking cheap cars are typically not homeowners which makes charging a problem so there’s even less of a market for cheap electric cars.
No where is it claimed that Chinese vehicles would drive American car companies out of buisness, the article was discussing how China could use Mexico and nafta to side step terrifs.
Okay so maybe I’m misunderstanding thr whole situation. What’s the risk of allowing Chinese BYD imports without tariffs then?
American companies want less competition and certainly don’t want to compete against a heavily subsidized vehicle.
