Mexico Faces After-Sales Gaps as China Auto Brands Exit Market

The recent withdrawal of several China-sourced vehicle brands from Mexico has created gaps in service, documentation and parts availability for existing owners, exposing the absence of regulations guaranteeing minimum after-sales support. The exits have left some buyers unable to complete regulatory procedures or obtain basic maintenance. “Cases like this are a consequence of the indiscriminate entry of Chinese brands,” Armando Soto, CEO, Kaso y Asociados, told Expansión. The situation highlights a structural vulnerability: importers can cease operations without requirements to ensure service continuity or parts supply.

One of the most visible examples is SEV, a brand created in Mexico that sold four Chinese-built electric models through agencies in key locations in Mexico City and the State of Mexico. Those facilities have since closed. Owners seeking emissions-related exemptions or EV certifications report that authorities require technical letters issued by an authorized agency. “They asked me for a letter confirming the vehicle’s electric functioning. I couldn’t get it because the agencies no longer operate,” one customer said. Phone numbers listed on the company’s website are inactive.

Mexico lacks regulations obligating brands or importers to provide parts, documentation or service for a minimum period. When importers exit without a continuity plan, the burden falls entirely on consumers. Soto noted that Mexico has experienced similar cases, including FAW’s withdrawal after its distribution agreement with Grupo Salinas ended. Some service shifted to independent workshops, but parts availability quickly diminished. “When these gaps appear, black-market importers bring in parts,” he said, adding that this creates safety and quality risks.

External certification bodies have been floated as a temporary workaround. “An accreditation entity could certify the electric system for future renewals of holograms or green plates,” Soto said, suggesting that such organizations could validate roadworthiness when brand support disappears.

The landscape may tighten further as the Ministry of Economy considers tariffs of up to 50% on vehicles imported from countries without free trade agreements. The tariff—intended to strengthen domestic industry and increase fiscal revenue—could also serve as a signal to the United States ahead of the USMCA review on July 1, 2026. Higher tariffs would increase prices for China-built models and pressure business models reliant solely on imports. “There will be a reconfiguration. With high tariffs, less competitive models would be the first to leave,” Soto said. He added that brands with established global structures in Mexico, such as BYD, MG and GWM, are better positioned to remain, while smaller importers may not withstand the added cost pressure.

Gerardo Gómez, general director, J.D. Power Mexico, warned that tariffs of up to 50% on Chinese vehicle imports would not only raise consumer prices but could force at least half of China-sourced brands in Mexico to exit the market. Part of Mexico’s automotive assembly sector has also voiced concern that proposed tariffs could disrupt access to essential components such as digital dashboard touchscreens—now standard in modern vehicles. Aumovio, a German company that manufactures these displays in Guadalajara for Ford, General Motors and Stellantis, flagged the potential impact. “We explained the dependency we have on Chinese components,” said purchasing director Carlos Gómez, noting that developing alternative supply chains would require years of investment in equipment and workforce training.

Some companies planning to enter Mexico have already reconsidered. Neta, a Chinese EV startup, held a prelaunch in 2024, opened offices and hired staff, but later reversed course, closing operations and dismissing employees. Industry leaders warn that such withdrawals damage consumer perception. Isidoro Massri, director of JAC in Mexico, has said abrupt exits revive the stigma created by past failures and complicate trust-building efforts by established brands.

As smaller importers leave, consumers face stalled paperwork, reduced access to parts and uncertainty over technical verification. The retreat of China-linked brands underscores a broader risk: without clear rules and enforcement, market instability shifts entirely onto vehicle owners, who must navigate an ecosystem where entry remains easy but long-term consumer protection is limited.