How Chinese EVs Are Taking Over Mexico

Mexico has quickly become a major market for Chinese auto makers. Last year, China was the leading car supplier to Mexico, exporting $4.6 billion worth of vehicles. Some Chinese electric vehicle makers – including Tesla-rival BYD – have been looking for a further foothold in North America by exploring factory sites in Mexican states Durango, Jalisco, and Nuevo Leon. For Mexico, the foreign investment is an economic boost and some local governments have offered incentives to Chinese companies exploring factory options. But U.S. officials worry this could be a part of a larger strategy from Chinese auto makers to skirt trade restrictions and enter the American market. Experts say this leaves Mexico in a difficult position of maintaining its crucial relationship with the U.S. without being overly friendly to Chinese investment. Now at the center of a trade war between two major powers, how has Mexico quietly become a hot spot for Chinese EV companies and will the country become a “backdoor” for these cars to drive into the U.S.?

Chapters:
1:32 How Chinese EVs are taking over Mexico
1:36 Chapter 1 – China’s entry to emerging markets
5:12 Chapter 2 – Mexico’s auto paradise
8:30 Chapter 3 – Highway to the future

Produced by: Merritt Enright
Edited by: Evan Lee Miller
Animation: Christina Locopo, Jason Reginato
Supervising Producer: Jeniece Pettitt

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How Chinese EVs Are Taking Over Mexico

[Ray-eu]

Toyota Corolla in China: $11K
Toyota Corolla in U.S.: $30K
TBH our auto manufacturers are getting too comfortable

[jonathanpowell]

US moves car factories to Mexico that's fine, but China does the same and people freak out. I want the cheaper cars

[jameshack]

Americans always criticize China about subsidizing industries. So the $7500 tax credit to buy an American EV is not a subsidy? Or the billions in grants to build battery plants in America? America is just not competitive

[bldomain]

CNBC always used subtle negative words on Chinese EVs but I am glad the majority of the comments here disagree. China is not scare of competition. If you go to China, you can see so many US, European, Japanese and Koreans products there.The Chinese sees it as a good incentive to compete and this benefit China. I am disappointed that the Americans are scare of competition especially from China. Their companies need protection from their government. I can hear chickens sounds already.

[DSiri]

As a consumer that is not interested in using EVs, at least not yet. These cheap chinese vehicles has caused other brands (here in Thailand) such as toyota, mitsubishi etc. to drop their RRP which is good for all. So I am all for it. Competition is good for us consumers!

[raymonddon]

im a poor yankee living at the states... BYD please come to USA. we cant afford $55K for a car, chinese BYD cars at $9K will save me and my family - big time!

[davidhughes]

Yeah. China's 'overcapacity' is hurting the US, and Europe. I want to know WHY the 'overcapacity' issue NEVER came up when the US and European cars are exported all over the world? Obviously all the cars produced in the US and EU cannot be sold in their respective countries and had to be offloaded in the overseas market. But you don't hear those countries cried 'overcapacity'!

[jasonjean]

This "overcapacity" narrative is ridiculous. China exports 10% of its EV production. The U.S. exports 25% of its automotive production, Japan exports 50%, and Germany exports 80%. But somehow China needs to be singled out for "overcapacity". The fact that the U.S. government and media doesn't even make sense anymore is telling.

[makauonesmus]

If America can't compete just shut up and stop the nonsense of government subsidies as if USA ain't giving massive subsidies to their companies.

[bobbob-giyp]

Competition is a good thing, the American auto makers just want a monopoly on expensive meh vehicles

[Genesis-]

People prefer BYD because they’re cheaper and better quality than Tesla. Get over it jealous Americans.

[chingonsh]

We don't care if your lawmakers don't let you drive cheap, good quality chinese cars. We in mexico can love these cars. We can't afford your 100k ford or chevy trucks so if you can't compete don't try to prevent other countries from selling their peoducts

[Rockrockyrockrock]

lol can you imagine the capitalist world crying cause they can’t compete? Crazy.

[saliferousstudios]

Just build a cheap car. Jesus. This isn't rocket science people. I REFUSE to believe that you cannot sell a car for less than 50k new.

[yourenodaisy]

More then half of the worlds EV are sold in China! Why she telling us there is no demand of EV in China. There is no such thing is over capacity, there is a huge demand of Chinese EV overseas, is why they're set up shops overseas. There is a demand of Chinese EV is why the 100 percent tariffs is in place in the US.

[EZ-rszv]

From pharmaceuticals to cars, why does almost everything cost more in America vs other countries? Is it possible that our "democratically elected officials" care more about corporate profits than the well being of its the common people?

[pablolamont]

I'm from Mexico, bought a Byd SUV, same equipment that my previous X5 at half the price, uses half the gasoline and haven't had any issues with the car itself, great buy. Cheers!

[darkmatter]

Whatever happened to America's undying love for the free market? Is that only applicable when it suits them? 😅

[juventinorodriguez]

It is hard for Americans to understand that Mexico is no longer the back door, it has become the front door.

[penghenry]

The comments are much better than this video itself! Good job CNBC! The real problem is not Chinese car companies, it’s the big 3 in the U.S. are too comfortable to sell their unreliable and overpriced vehicles to the general public. Let the public buy whatever they want and make some extra tariffs off your own tax payers🎉