Chirey Mexico Leverages Network to Navigate Tariff Changes

Chirey Motor Mexico has reaffirmed its long-term commitment to the Mexican market despite an evolving regulatory and tariff landscape reshaping the automotive sector. The company emphasized that its strategy relies on contingency planning, a consolidated distributor network, and access to Chery Group’s global industrial and technological platform, ensuring operational continuity, commercial stability, and sustained product and technology development in the country.

The announcement was made on Jan. 23 in Mexico City, as automakers assess the impact of higher import tariffs on supply chains, pricing, and investment decisions. Chirey Motor Mexico operates locally through the Chirey, OMODA, and JAECOO brands, stating that its operational structure allows business continuity without disruption.

“Mexico is a strategic market for the company,” said Svein Azcué, COO, Chirey Motor Mexico. “Over the past several years, Chirey has consolidated a mature operation in the country, with defined processes, a stable organizational structure, and a solid distributor network.”

The company has strengthened its dealer operations via a co-living distribution model, where multiple brands share optimized points of sale while maintaining nationwide service and aftersales coverage. This approach improves efficiency, reduces fixed costs, and ensures network consistency, positioning Chirey to adapt effectively to regulatory or cost-related pressures.

Chirey Motor Mexico has also implemented contingency plans to address potential tariff increases. While specific measures were not disclosed, the company emphasized that these plans are designed for long-term resilience rather than short-term reaction.

A key pillar of Chirey’s strategy is its connection to Chery Group’s global manufacturing and development network, which includes 16 plants worldwide, 12 outside China, several in countries with free trade agreements with Mexico. This global footprint allows the company to mitigate trade risks while maintaining stable supply.

As part of its technology focus, Chirey highlighted its Super Hybrid system, achieving a combined driving range of over 1,675 km on a single charge, validated during a road test from Mexico City to San Antonio, Texas. Hybrid and electrified powertrains remain central to the brand’s portfolio as regulatory and consumer expectations evolve.

“Chirey today has a consolidated operation in Mexico,” Azcué said. “We have an established network and defined plans for current conditions. Our presence responds to a long-term vision, and Mexico will continue to be a strategic market for the group.”

The statement comes as Mexico implements new import tariffs in 2026, ranging from 5% to 50% on goods from countries without free trade agreements, including China. The measure covers over 1,000 tariff lines, including consumer goods, industrial inputs, vehicles, and auto parts, with duties calculated based on customs value. Auto parts and finished vehicles are expected to face the highest rates, increasing cost pressures for import-reliant automakers.

Other Chinese automakers are pursuing varied strategies: 

• BYD is exploring local manufacturing to mitigate tariffs and has sought exemptions for electric vehicles under the new framework. Last year, BYD nearly doubled its sales in Mexico, now accounting for 70% of all electric and plug-in hybrid vehicles sold. Estimated price increases under new tariffs are projected to be no more than MX$15,000 (US$834) per vehicle.
  JAC Motors operates a recognized assembly plant in Ciudad Sahagun, Hidalgo, qualifying for industrial programs that exempt it from the highest tariff rates. The facility, which began in 2017, now has a capacity of 60,000 units annually. In 2025, JAC announced a MX$3 billion (US$170 million) investment to double production, expand the site, and enhance logistics infrastructure. The company sources 25–30% of components locally and works with nearly 300 Mexican suppliers.

While some Chinese automakers, like Chirey, rely on global manufacturing diversification, others focus on localization or investment adjustments to maintain access to Mexico’s growing automotive market.

Market data underscores the rising importance of Chinese brands: in 2025, over 240,000 vehicles from Chinese automakers were sold, making them the third most chosen brands among Mexican consumers. BYD led sales, surpassing established manufacturers such as Chrysler, Hyundai, Ford, and Honda.