GAC to Become First Fully Chinese Automaker in Mexico

GAC Mexico has confirmed the establishment of its first domestic assembly plant, scheduled to begin commercial operations in 2H26. The move positions GAC as the first automotive brand in Mexico to operate a manufacturing facility backed by 100% Chinese capital. This strategic expansion is aimed at strengthening the company’s regional presence while circumventing the 50% import tariffs currently affecting Chinese-manufactured vehicles.

The development is a cornerstone of the "One GAC 2.0" global strategy, an international expansion model focused on sustainable growth and local integration. Under the guiding principle of "From Mexico for Mexico," the company aims to leverage the country's established manufacturing base to better serve the domestic market and, eventually, the broader Americas.

The decision to localize production was significantly accelerated by the current geopolitical environment. In October 2025, GAC representatives told Excélsior that evolving tariff policies required a faster transition to Mexican manufacturing. By establishing a local footprint, the company seeks to mitigate the financial impact of trade barriers and reconfigure its supply chain to enhance competitiveness.

“In an international environment marked by new tariffs and the reconfiguration of global trade dynamics, GAC Mexico is moving forward with determination, strengthening its local presence and building a more efficient and competitive operation,” the company said in an official statement. “This step not only responds to current conditions but anticipates future challenges, positioning the company with a long-term, customer-focused vision.”

Flexible Assembly and Multimodal Technology

In its initial phase, the plant will operate under a "flexible assembly" model. This advanced manufacturing system is designed to switch between multiple vehicle architectures and propulsion technologies on a single production line. The facility will be capable of producing:

• Internal combustion engine (ICE) vehicles

• Hybrid vehicles

• Plug-in hybrid electric vehicles (PHEVs)

• Battery electric vehicles (BEVs)

This versatility will allow GAC to respond dynamically to shifting market demand. The production lineup is expected to include sedans, SUVs, pickups and crossovers. Models planned for local assembly include the EMZOOM, GS8 and ION UT, while the GS7—currently preparing for its Mexican market debut—is also expected to be a key focus of the facility.

Economic Context and Regional Integration

GAC’s leadership expressed strong confidence in Mexico’s automotive sector, citing its global reputation for quality and specialization. “This long-term strategic decision reflects the brand’s confidence in the potential of the Mexican market, the strength of its automotive industry and the country’s manufacturing capabilities, which are globally recognized for high standards of quality, competitiveness and specialization,” the company said.

While GAC has not yet disclosed the total investment or final site location, the company previously explored partnerships with Stellantis and evaluated available facilities in states such as Morelos and Aguascalientes. However, the decision to proceed with 100% Chinese capital indicates a more independent approach to infrastructure development.

Beyond assembly, GAC views the facility as a platform for future research and development (R&D) and broader commercial expansion across Latin America. The company plans to release further details on the plant’s location and total investment in June 2026, ahead of the start of operations.