China
2020.02.03 06:46 GMT+8

How a Chinese car company is putting a new twist on car production in Mexico

Updated 2020.02.03 06:46 GMT+8
CGTN

Mexico's auto industry is one of the country's largest economic sectors. The country produces more than four million vehicles a year, exporting more than 80% of them. Yet one Chinese auto company has a different model.

Since 2017, JAC Motors, one of China's largest auto companies, has been producing cars in Mexico specifically for the Mexican market. While other international car companies have built their own operations in the country, JAC has invested alongside Giant Motors Latin America, a Mexican car company, which has the license to produce and sell the Chinese-designed vehicles within Mexico.

That's a vital difference, according to analyst Samuel Ortiz, who studies the sector.

"This sort of shared investment is fundamental, and shows how China is able to contribute to the advancement of technology here in Mexico. And it's important to mention that this is the only case of international and national investment working alongside each other. That shows us that Chinese investment differs from the traditional model," Ortiz said.

And with the new U.S.-Mexico-Canada free trade agreement about to replace NAFTA, Mexico's industries are looking promising.

Mexico's ambassador to China recently announced that two other Chinese auto firms, Changan and BYD, are actively pursuing a greater presence in Mexico. And for the operation already there, more growth is projected.

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