Chirey Trims Mexico Dealers, Focuses on Better Service

Chirey has restructured its dealer network in Mexico, reducing the number of agencies to 83 from an initial goal of 100 as part of a strategic effort to consolidate operations and improve after-sales service, CEO Svein Azcue said to Expansión. The move involved closures, mergers, and complex negotiations with distributors to create a stronger, more profitable dealer base without losing market presence.

“It was a long and difficult process because we want to respect and protect our distributors’ investments,” Azcue said. Consolidation included merging overlapping points of sale in cities such as Cuernavaca and Santa Fe, where two agencies were combined into one. “We have not lost presence in any market, but rather consolidated sales points,” he added.

The initiative, called “co-living,” integrates all group brands into single locations with larger showrooms and expanded workshop capacity. These changes were implemented through direct negotiations with distributors, avoiding unilateral decisions. Azcue cited Mexico City as an example, where the closure of the Insurgentes Roma Norte agency led to its market being absorbed by two other dealers, strengthening those points.

The reorganization coincided with a product relaunch, including models like Tiggo 8, Tiggo 4, Jaecoo 7, and plug-in hybrid versions. “I promised my dealers we would relaunch all products this year, and that has been fulfilled,” Azcue said.

A major challenge has been after-sales service, historically weak for Chinese brands in Mexico. Between May 2024 and May 2025, Chirey’s sales dropped 52.4%, according to INEGI, reflecting customer concerns over parts availability and service quality. To address this, Chirey established a central warehouse managed by DHL with over 10,000 square meters, enabling next-day parts delivery in Mexico City, Guadalajara, and Monterrey, and an average of 4.8 days nationwide.

“We prepare the parts inventory before launching a product. When a customer arrives, we already have availability,” Azcue said. The company also deployed a business intelligence system to monitor inventory and service times, sending proactive parts orders based on national data rather than relying on distributors’ requests.

Globally, Chirey has focused on post-sale services, launching the “Chirey Family Care” program in April to provide comprehensive customer support throughout vehicle ownership. Azcue described this as a key strategy to rebuild trust and counter the negative perception of Chinese brands in Mexico.

“Our priority is to stay close to our network. We invite dealers to China, and I visit them in their agencies. The network is now convinced of the brand. The next step is to convince the customer,” Azcue concluded.