Giant Motors Braces for Impact of Trump Tariffs on Chinese Cars

Giant Motors, the only assembler of Chinese vehicles in Mexico, remains undeterred by the potential tariffs proposed by Donald Trump. The company, a joint venture between the Massri family and Carlos Slim’s Inbursa Financial Group, operates an assembly plant in Ciudad Sahagun, Hidalgo, where it manufactures vehicles for Anhui Jianghuai Automobile Group (JAC). 

“We have faced many challenges and continue to invest what is necessary to ensure profitability. Should trade conditions shift, we are ready to adjust,” said Elias Massri, CEO, Giant Motors, in an interview with Bloomberg. The company began assembling JAC vehicles in 2019, producing 8,000 units initially, and by 2021, it doubled its output. This growth was facilitated by JAC’s robust supply chain, which helped it navigate the global chip shortage.

Giant Motors plans to produce 30,000 vehicles by the end of 2024 and 40,000 in 2025, with a plant capacity of 60,000 vehicles per year. The company also intends to launch four new models by 2025 and is constructing a logistics center near its Hidalgo facility.

Rather than targeting the US market, Giant Motors has chosen to focus on the Mexican market. Massri describes this approach as “Mexicanizing” its vehicles, which involves importing completely knocked-down (CKD) kits from China and adjusting designs to better suit local needs, such as higher suspensions and more powerful engines for rough terrain and poor roads.

The rising presence of Chinese automakers in Mexico has raised concerns in the United States and Canada regarding potential evasion of trade barriers. In response, some Chinese companies, including BYD, have delayed plans to open plants in Mexico. President Claudia Sheinbaum also confirmed that no concrete proposals have been made by Chinese firms to build electric vehicle factories.