Chinese carmakers defy 50% tariffs as Mexico sales jump 30%

Chinese vehicle brands continued to gain ground in Mexico during the first half of the year, with sales rising nearly 30% despite new tariffs introduced by the Mexican government to curb imports from Asia.

Data from the Mexican Association of Automobile Distributors, obtained by Reuters, showed Chinese brands sold 137,525 vehicles in the first six months of the year, compared with 107,712 during the same period last year. Their market share also increased to 17% from 14% a year earlier and 7% in 2022.

The figures highlight how demand for Chinese vehicles has remained resilient even after Mexico imposed a 50% tariff in January on vehicle imports from China and other Asian countries.

Tariffs and Vehicle Imports

Mexico introduced the higher tariff to protect domestic jobs and address concerns raised by the United States over the rapid expansion of Chinese automakers in North America.

However, Deputy Foreign Trade Minister Luis Rosendo Gutierrez said the sales figures do not reflect the full impact of the policy because manufacturers had built large inventories before the tariffs took effect.

“The sales data is misleading,” Gutierrez told Reuters.

He said imports of Chinese-brand vehicles declined 43% during the first five months of the year compared with the same period in 2025.

“What’s important is not the sales figures. What’s important is that the measures have halted imports of vehicles from Asia,” he said.

The issue remains a major topic in discussions over the future of North America’s trade agreement, with U.S. and Mexican officials expected to begin another round of negotiations in Mexico City on Tuesday.

Chinese Automakers Continue Growing

Although imports have slowed, Chinese brands continued to strengthen their position in Mexico’s competitive automotive market.

According to the distributors’ association, Geely recorded the strongest sales growth this year, followed by MG Motor, Changan, and Chirey.

BYD, China’s largest automaker, remained the country’s biggest Chinese brand despite a slight decline in sales to 33,969 vehicles, down from 34,606 a year earlier.

The company, which has expanded aggressively across Mexico, did not immediately comment on the report.

Market Share Keeps Expanding

Chinese automakers have rapidly transformed Mexico’s vehicle market over the past five years.

Their market share has climbed from less than 1% in 2020 to 7% in 2022, reaching 17% during the first half of this year.

Guillermo Rosales, executive president of the Mexican Association of Automobile Distributors, said Chinese brands are expected to continue gaining market share, although the pace of growth may slow.

“The market has become saturated with supply,” Rosales said.

He noted that several established brands are now selling fewer vehicles than they did a year ago, allowing Chinese competitors to gain more customers.

Rosales also said Chinese manufacturers are likely to continue absorbing the additional costs created by Mexico’s higher tariffs rather than risk losing market share in one of the world’s largest vehicle markets.

“Chinese automakers have a strong incentive to absorb higher costs than lose market share,” he said.

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