Chinese Cars Lose Market Share in Mexico in 2025

The market share of Chinese-made vehicles in Mexico has fallen from 21.3% in 2024 to 19.9% so far in 2025, according to INEGI. Analysts expect the decline to persist through year-end, citing logistical hurdles, customer dissatisfaction, and growing geopolitical pressures. Once welcomed by Mexican buyers, Chinese automakers are now confronting visible cracks in their market strategy.

Eric Ramírez, Director for Latin America and the Caribbean, Urban Science, attributes the downturn partly to rapid expansion without adequate post-sale support. “In their ambition to grow excessively and too quickly, they began to make many mistakes, and the automotive industry here demands immediacy,” he told Expansión. One recurring problem is delays in replacement parts, prompting brands like Chirey and MG to overhaul logistics and partner with companies such as DHL to improve inventory delivery. Despite these efforts, issues persist: the MG5 sedan slipped from seventh to ninth place in sales rankings, and MG dropped from seventh to tenth among all brands.

The shift also reflects broader market changes. The post-pandemic boom that favored Chinese carmakers in 2022—when global supply chains lagged but China’s production had rebounded—has faded. Political factors have compounded the slowdown. The return of Donald Trump to the US presidency has heightened trade tensions with China, pressuring both Canada and Mexico to raise tariffs. Mexico ended certain EV import incentives for non-trade-partner countries, including China, in September 2024, and lawmakers are considering further tariff hikes.

From January to April 2025, Chinese vehicles still accounted for 19.1% of Mexican sales, or about 90,227 units, making Mexico their largest export market worldwide. Some industry figures propose raising tariffs to 70% to counter what they view as unfair competition, citing subsidies that allow Chinese brands to undercut prices. Former Mexican ambassador to China Jorge Guajardo supports the measure, noting that Brazil, Russia, and Thailand have implemented similar protections.

Meanwhile, China’s auto sector continues to grow. In 1H25, sales rose 9.2% to 11.08 million units. BYD retained the top spot, Geely surged 89.1% to second place, and EV sales climbed 26.9%, representing 41.7% of the market. Tesla slipped two positions after a 5.5% sales drop.