GML to Invest US$165 Million, Doubling Hidalgo Plant Capacity

Giant Motors Latinoamérica (GML), the assembler and distributor of JAC vehicles in Mexico, announced a MX$3 billion (US$165 million) investment to expand its manufacturing plant in Ciudad Sahagun, Hidalgo. The investment will double the plant's annual production capacity to 60,000 vehicles and enable the implementation of Industry 4.0 processes by 2026. The expansion includes constructing 33,000 m² of new facilities and creating 1,000 direct and 4,500 indirect jobs.

The project will bring the plant's total area to 300,000 m² and increase the number of assembly lines from four to eight. “We can grow further, but we will move forward as the Mexican market demands,” said Elías Massri, CEO and Chairman of the Board, GML.

Massri emphasized GML’s dedication to the domestic market: “We are focused on Mexico and for Mexico, assembling vehicles locally. They do not arrive pre-assembled; they’re made here to be Mexican.”

During the announcement, GML unveiled a refreshed corporate image to reinforce its connection to Mexican identity. As part of its commitment to domestic operations, all vehicles produced at the facility will bear the “Hecho en México” label.

The expansion also includes a new 15-hectare logistics yard to enhance operational efficiency, a digital training center, and a high-performance testing track.

GML continues operating under a Semi Knocked Down (SKD) model, where vehicles are partially assembled abroad before final assembly in Mexico. While international trade developments, such as tariffs, are closely monitored, Massri remarked, “Global or geopolitical events are beyond our scope; we focus on what we can control.”

Electric vehicles (EVs) play a crucial role in GML’s growth strategy. “We currently have the capacity to produce over 7,000 EVs annually, with scalability up to 12,000 units when required,” said Martín Gutiérrez, Plant Director, GML.

The plant assembles 23 vehicle models, including pickups, SUVs, and trucks, and will expand its portfolio to 24 models. GML’s flexible, multi-model production strategy caters to local market demands. “These models are designed and integrated locally to meet the specific needs of the Mexican market,” added Massri.

GML’s operations are supported by a network of 100 suppliers, 35 of which are based in Hidalgo. “Developing local suppliers is a priority. We are focused on Hidalgo because we believe support starts at home,” Massri emphasized.

Isidoro Massri, GML’s Corporate Director, highlighted JAC’s strong performance in Mexico, noting a 40% average annual growth in vehicle and truck sales. “Grupo JAC has named Mexico its best assembly plant globally,” he added.

Since beginning assembly operations in 2017, JAC has scaled production from 1,000 vehicles annually to approximately 3,000 units monthly. GML now employs over 1,000 people directly and operates through 63 JAC Stores and 22 dealership partners in Mexico.

While exports are not a primary focus, Massri acknowledged potential opportunities: “We have the capacity to export, particularly to Latin America, where Mexican quality and standards are well-received.”

Despite macroeconomic challenges and a projected slowdown in vehicle sales for 2Q25, GML remains optimistic. “Unit growth may slow, but a major technological shift is underway. With rising vehicle prices, we expect market value to increase. We project 20% growth over last year, producing 35,000 units,” Massri stated.

“The investments are in place because we see a bright future for this country. We’ll adapt to market demands,” Massri concluded.