Chinese Auto Brands Pull Out of Mexico, Stranding Car Owners

The withdrawal of several Chinese auto brands from Mexico is exposing gaps in market oversight, leaving vehicle owners without access to service, parts, or documentation required for basic regulatory procedures. The departures follow a rapid expansion phase and highlight the absence of rules obligating automakers or importers to maintain post-sale support.

SEV, an electric vehicle brand created in Mexico and supplied with models sourced from China, is among the most recent exits. The company marketed four electric models—E-Nat, E-Tus, Friday and Friday 410—and operated dealerships in Mexico City and the State of Mexico. Those facilities are now closed, and contact numbers listed on the company’s website go unanswered.

The lack of operational dealerships has created immediate problems for customers. One owner told Expansión that while attempting to obtain an emissions-exempt hologram, the Secretariat of Mobility required a certificate confirming proper electric operation issued by the dealership. “They asked me for a letter of proper electric functioning from the agency,” the owner said. “I could not get it because the agencies no longer exist.”

Mexico has no regulation requiring brands or importers to guarantee spare parts, service, or technical documentation for a minimum period. Responsibility is left to each importer. When those entities exit without a continuity plan, consumers bear the full impact.

Armando Soto, CEO, Kaso y Asociados, said the situation reflects how the market opened in recent years. “Unfortunately, cases like this are the consequence of an indiscriminate opening to Chinese brands that arrived in the country,” Soto said. He noted that while some brands invested in distribution and parts networks, others lacked automotive experience. SEV operated as the electromobility arm of Grupo Solarever, a company focused on solar panels.

Soto said the absence of safeguards has precedent. After FAW exited Mexico following its alliance with Grupo Salinas, service shifted to independent workshops, while parts became scarce. “In those gaps, black markets emerge to import parts,” Soto said, adding that the practice increases risk and leaves vehicles operating without proper conditions.

As a workaround for missing documentation, Soto suggested third-party solutions. “Perhaps an accreditation entity could certify the proper functioning of electric vehicles for future renewals of holograms or green plates,” he said.

Market pressure may increase following a decision by the Economy Ministry to impose tariffs of up to 50% on vehicles imported from countries without free trade agreements, MBN reported. The measure affects Chinese imports and may force import-only projects to reassess pricing and viability. “A reconfiguration is a fact,” Soto said. “With high tariffs, the least competitive models would be the first to leave.”

Soto said brands with global structures in Mexico, such as BYD, MG and GWM, are better positioned to remain, while smaller independent importers may not. Some brands have already reversed plans. Neta, a Chinese electric vehicle startup, conducted a prelaunch in 2024 but withdrew before an official release, closing its offices and laying off staff by year-end.

Industry executives warn of reputational effects. Isidoro Massri, head of JAC in Mexico, has said abrupt exits revive the stigma left by FAW and complicate efforts by established Chinese brands to build trust.

As the market adjusts, owners face stalled paperwork, limited access to parts and uncertainty over vehicle certification. The exits show that without clear rules, the cost of market disorder falls on consumers who already purchased vehicles and now lack support.

Chinese Market Share Contracts as Tariff Uncertainty Grows

By the end of 2025, brands of Chinese origin accounted for 15 out of every 100 new vehicles sold in Mexico. This share includes automakers that report sales to official authorities and those that do not, reflecting the rapid expansion of Chinese brands across the domestic market.

According to data from INEGI, sales of Chinese-origin brands represented 9.4% of the domestic market from January to December 2025, totaling 143,134 units. However, when including sales from brands that do not report to the institute, the figure rises to more than 244,000 vehicles, based on estimates from the Mexican Association of Automotive Distributors (AMDA) shared by its president, Guillermo Rosales, with El Economista.

That volume represents 15% of the 1,625,722 vehicles AMDA estimates were sold in Mexico last year. Asked about sales expectations for 2026 and whether Chinese brands will continue gaining share from traditional automakers, Rosales said it is difficult to forecast due to uncertainty around tariffs. “They already closed with a 15% share, and it is hard to make a projection right now because of the impact of tariffs, which we do not yet know how strong they will be,” he said. “It will be a year of adaptation. At least in the first half, I do not see significant changes, and so far we are not seeing price increases.”

Despite holding a 15% market share in 2025, MBN reported that Chinese-made vehicles accounted for 21.3% of Mexico’s market in 2024. Analysts attributed the decline to logistical hurdles, customer dissatisfaction and rising geopolitical pressures, signaling growing strain in the market strategy of Chinese automakers once favored by Mexican buyers.