Move Over Mercedes: Chinese Cars Grab Mexican Market Share
Muhammad Irfan Published December 27, 2024 | 11:50 AM
Mexico City, (APP - UrduPoint / Pakistan Point News - 27th Dec, 2024) The growing popularity of Chinese sport utility vehicles and pickup trucks has shaken up Mexico's luxury car market, hitting sales of traditionally dominant brands such as Mercedes-Benz and BMW.
According to industry experts, Mexicans are increasingly switching from traditionally dominant sedans to Chinese vehicles due to a combination of comfort, technology and price.
It is no small feat in a country home to factories of foreign brands such as Audi and BMW, and where until a few years ago imported Chinese cars were stigmatized, as in other parts of the world.
According to the Mexican Association of Automotive Distributors (AMDA), the high-end segment of the market registered a sales drop of 8.1 percent from January to November.
Audi's sales slumped by 21.9 percent, while BMW, which includes the Mini brand, saw no growth in Latin America's second-largest economy, home to 129 million people.
Mercedes-Benz suffered a 9.
8 percent decline, according to the state-run statistics institute INEGI.
In contrast, Motornation, which sells the BAIC, JMC and Changan brands in Mexico, saw an 8.8 percent increase in sales in the first 11 months of this year, while those of Jetour rose 131 percent, it said.
Chinese firms now control 9.3 percent of the Mexican market, according to the AMDA.
They have brought stiff competition to the pickup truck segment, with many of the features of high-end models offered by premium brands, the association's president Guillermo Rosales told AFP.
Traditionally, the premium segment included sedan-type vehicles with luxury engines and top-of-the-range features.
However, over the past decade consumer preferences have shifted toward utility vehicles such as pickup trucks, minivans and SUVs.
Asian brands also benefited from an exemption from import tariffs on electric vehicles that were in effect in Mexico from 2020 until October 1.
