Jetour to Enter Mexican Market With US$1 billion Investment
Chinese automaker Jetour is set to enter Mexico’s automotive market in April 2023 with two imported SUVs followed by a hybrid vehicle by the end of this year. The automaker will also make a US$1 billion investment in the construction of an ICE and electric vehicle assembly plant that will be finished by 2024. Víctor Villanueva, CEO, Jetour Mexico, confirms that the company is in talks with different state governments to define the plant’s location.
Jetour will partner with LDR Company, a representative of Chinese companies in Mexico, to manufacture SUVs in the Latin American country. The two companies are currently lobbying different governments, including those of Aguascalientes and Guanajuato, to land the investment, according to El Economista. This announcement follows the trend of Chinese automakers relocating or increasing their operations in Mexico, such as JAC and Chirey did.
Jetour will start by importing some auto parts from China, especially technological pieces, while the entire manufacturing network is developed, says Villanueva. The company will work hand in hand with suppliers such as Contemporary Amperex Technology Co, Limited (CATL) and Foton, to become an automaker power hub in North America. José Centeno, Member of the Board of Directors, LDR Solutions, highlights that Jetour aims to prove to the Mexican market the quality and technology of its vehicles. "It is known that the Chinese produce with quality and that can be seen in the premium cars they produce,” says Centeno.
The announcement of the assembly plant in Mexico comes in the context of the nearshoring boom and the expansion of Chinese companies in the Mexican market. Jetour aims to sell 20,000 of its X70 and X90 SUV models in Mexico during its first year in the country by establishing 30 distributors.
Chinese Automakers Aim to Expand Operations in Mexico
Several other Chinese automakers have turned to Mexico in recent years. For example, BYD plans to enter the Mexican market and sell 10,000 EVs in 2023. The company plans to capture 10% of the total market share in the long-term, says Zhou Zou, CEO, BYD Mexico, according to Reuters.