Mexico’s Electrification Transition Needs Education: JACBy Sofía Garduño | Wed, 06/29/2022 - 11:29
Q: After five years of operating in Mexico, how has JAC adapted its offer to the Mexican market?
A: JAC is one of the few multinational brands in the automotive industry with a unique strategy for Mexico. Our unique product planning, timing and availability have improved our penetration in the country, specifically regarding EVs.
In Mexico, JAC has been electric since 2011 and has 6 electric products, 3 for passengers and the others focused on the commercial market. China believed in us and has worked closely with Mexico, which is a reference for Latin America. During the past three years, we invested heavily in electrification and obtained significant results in the country.
Q: How has JAC become the leading EV brand in the Mexican market as it slowly transitions to electromobility?
A: We recently met with Minister of Foreign Relations Marcelo Ebrard’s team. They said that what it took JAC 20 years to achieve in China regarding electrification, took only three years to achieve in Mexico. This shows that Mexico is not significantly lagging in electrification but the transition could be faster. We are re-educating the market and we have a large challenge and responsibility but, simultaneously, a large opportunity.
Car buyers are no longer chasing brands; they are choosing a vehicle because of its characteristics. We want to change traditions and we understand that we need to tell stories, share experiences and be patient. For every EV we sell, we reach 10 more clients. Companies buying electric fleets have an important role in this transition. We want to be the leader and maintain this position in the transformation of the automotive sector.
Q: What goals does JAC aim to achieve regarding EVs in Mexico?
A: We want to be a reference and be considered No. 1. We also want to bring pride to Mexico. Mexicans do not buy EVs not because they do not want to; they do not have the opportunity to do so. We want to give them the opportunity to choose an EV.
Q: How is JAC digitalizing its sales processes?
A: We do not need to transform ourselves because even before the pandemic we were already there; we are just accelerating the digitalization process. Disruption and creativity have been key to our work since 2017. In January 2019, we launched jac.mx, the first and only platform to allow customers to purchase a car in a human-free process. We do not want to eliminate all human interactions; we want to digitalize as many steps as we can. Before the pandemic we needed to hire someone to be fully focused on the leads generated on our platform because they were often ignored. After the pandemic, these leads are our biggest source of income. The Mexican population has been receptive to this new trend. Clients do not fulfill the entire process online as they still need to touch the car but they appreciate the small details that digitalization offers.
People consider nine brands before buying a vehicle and discard seven throughout the decision process, often following bad online experiences. For this reason, digitalization has become extremely important for companies. We are adapting and we believe in the “phy-gital” model, which consists of transforming physical spaces into digital experiences. We are not going to replace physical experiences but we need to digitize them.
Q: What are the short-term goals that JAC aims to achieve in Mexico?
A: We want to be leaders in this new, evolving industry. We want to be the craziest and boldest brand in Mexico but we need to remain human and deepen our understanding of the customer. Companies sometimes forget that clients are trusting you with one of the largest investments of their lives. Being human in a digital world is not easy but we need to be humble and be close to our users because they choose us among many others.
JAC Motors is a Chinese automobile and commercial vehicle manufacturer present in over 130 countries. JAC entered Mexico alongside Giant Motors Latin America.