Chinese car sales rise 30% in Mexico despite 50% tariff

Mexican sales of Chinese-brand vehicles increased nearly 30% in the first half of the year, reaching 137,525 units and representing 17% of new car sales, up from 14% a year earlier. The growth occurred after Mexico imposed a 50% tariff on vehicle imports from China and other Asian countries in January.

Despite the tariff, imports of Chinese vehicles fell 43% in the first five months compared with the same period last year, according to Mexico’s Deputy Foreign Trade Minister Luis Rosendo Gutierrez, who said the measures have halted Asian vehicle imports and that the sales figures are distorted by front‑loaded inventory. The surge has alarmed U.S. officials, who view Mexico as a potential springboard for Chinese automakers into the U.S. market, and is a flashpoint in ongoing North American trade pact negotiations, with a third round of talks scheduled in Mexico City.

Geely posted the strongest sales growth, while BYD remains the largest Chinese player in Mexico despite a slight dip in sales. Other brands such as MG Motor, Changan and Chirey also expanded their presence.