Mexico Won’t Offer EV Incentives to Chinese Automakers


mexico won t offer ev incentives to chinese automakers

Chinese automakers are expanding into Mexico, with companies like BYD opening dealerships across the country. Even so, the Mexican government isn’t rolling out the red carpet due to pressure from the United States. Automotive News reported that the country would not offer tax incentives or land discounts to Chinese automakers. It noted that the U.S. government believes that they should not be able to enter North America without paying tariffs.

Mexico is no stranger to Chinese auto companies, as there are around 20 already selling vehicles in the country. BYD, one of the largest, said it plans to greatly expand its sales operations in Mexico with dozens of dealerships by the decade’s end. U.S. government officials, especially those in the White House, have long expressed concerns about allowing Chinese-made vehicles into our country, citing national security concerns, but it’s unclear if the Mexican government treats them any differently than other brands.

The pressure coming from U.S. officials is likely due to its worries about Chinese companies establishing a manufacturing foothold in Mexico as a workaround to costly tariffs. They also want to take action to protect American EVs from cheap or subsidized Chinese models.

Security issues aside, Chinese EVs are generally cheaper than comparable models from American and other brands, which is a good thing for Mexican car buyers. That said, people there don’t buy that many of them, with EVs comprising just 0.5 percent of the Mexican auto market in 2022.

[Image: Mark Pitt Images via Shutterstock]

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