How Chinese EVs Are Taking Over Mexico
Mexico has quickly become a major market for Chinese auto makers. Last year, China was the leading car supplier to Mexico, exporting $4.6 billion worth of vehicles.
Some Chinese electric vehicle makers – including Tesla-rival BYD – have been looking for a further foothold in North America by exploring factory sites in Mexican states Durango, Jalisco, and Nuevo Leon. For Mexico, the foreign investment is an economic boost and some local governments have offered incentives to Chinese companies exploring factory options.
Experts say this leaves Mexico in a difficult position of maintaining its crucial relationship with the U.S. without being overly friendly to Chinese investment. Now at the center of a trade war between two major powers, how has Mexico quietly become a hot spot for Chinese EV companies and will the country become a “backdoor” for these cars to drive into the U.S.?
