Chinese automakers are preparing to acquire the Nissan–Mercedes—Benz plant in Aguascalientes, Mexico, indicating potentially major changes in the country's automotive industry, which has traditionally been dominated by Western and Japanese companies, Reuters reports.
Among the nine interested bidders, BYD and Geely, as well as the Vietnamese company VinFast, became finalists. Other Chinese manufacturers such as Chery and Great Wall Motor are also reportedly participating in the tender. The move reflects China's accelerating global expansion: BYD's sales have grown tenfold since 2020, while Geely's have doubled, and both companies exceeded 4 million units last year, which is comparable to Ford's production volume. Mexico, where the share of Chinese brands in the market has grown from zero to about 10% since 2020, is a strategic manufacturing center for Latin America, especially given that US duties on Mexican-made cars, which now amount to 25%, have weakened exports, reduced employment in the industry by about 60,000 jobs per year. In 2024, they contributed to the closure of factories such as Nissan–Mercedes.
While Chinese investments can support local jobs and industrial potential, Mexican authorities are reportedly urging caution not to jeopardize ongoing trade negotiations in North America, amid U.
S. concerns that Mexico could become a "back door" to China's subsidized excess production. With Mexico imposing 50% duties on Chinese imports, local manufacturing is becoming increasingly attractive, even though Washington maintains restrictions on the sale of Chinese-branded cars and continues to raise objections to their regional expansion on economic security grounds.
