GAC Motor Maintains 2026 Mexico Prices Amid 50% Tariffs

Chinese automaker GAC Motor confirmed that it will not raise vehicle prices in Mexico in 2026, despite an increase in import tariffs on Chinese-made vehicles from 20% to 50%. “Mexico is not one of the markets, but the most important market for the corporation, where a head office and a subsidiary have already been established, and there is a plan in place for Mexico to become the hub for all operations in Latin America,” said Sergio González, Sales Director, GAC Motor in Mexico.

The company views Mexico as a long-term manufacturing and distribution center. González noted that GAC’s technological alliances with Toyota, Honda, Mitsubishi, and Stellantis in China, combined with design work in Silicon Valley, enable the company to develop advanced vehicles ready for distribution across Latin America.

Although GAC had considered building a manufacturing plant in Mexico before US tariffs on Mexican auto exports, González said the recent tariff increase reinforces the brand’s long-term strategy. “We are carefully planning growth across short-, medium-, and long-term horizons. We are here for the long term,” he said.

The automaker recently restructured its dealership network, reducing distributors from 43 to 38 to avoid cannibalization. While acknowledging a slower local market, González said the overall industry continues to grow, albeit at a more moderate pace than in previous years. GAC will report its sales figures soon to the National Institute of Statistics and Geography (INEGI).