Mexico City, December 9, 2024 – Chinese electric vehicle manufacturer BYD has opened a makeshift dealership in a working-class neighborhood of Mexico City, selling its Dolphin Mini model at approximately $18,000, significantly cheaper than comparable U.S. models.
As Chinese automakers like BYD, Chery, Geely, and SAIC establish a foothold in Mexico, they face U.S. tariffs that effectively bar their entry into the American market. Nonetheless, the ambition to expand into North America is evident, with plans for potential factories in Mexico aimed at serving the Latin American market.
BYD's Dolphin Mini is gaining traction among consumers, with sales reportedly happening as quickly as vehicles arrive from China. Despite the challenges of registering these vehicles in the U.S. due to safety compliance issues, optimism remains high among local dealers.
Industry analysts note that Chinese automakers are increasingly competitive in quality and technology, with a notable presence in Mexico, where they now represent 9% of new car sales, up from virtually none five years ago.
General Motors has reported a projected loss exceeding $5 billion due to restructuring in China, highlighting the competitive pressure from Chinese manufacturers. Meanwhile, the Mexican government has recently increased tariffs on imported vehicles, reflecting concerns over the rising market share of Chinese brands.