Electric vehicles from China are making huge waves in Mexico's auto market. It might be too little, too late for a group of concerned stakeholders trying to turn the tide.
Bloomberg reported on BYD's growing dominance in electrified vehicles in the nation. The Chinese brand now accounts for around 70% of EV sales after doubling its sales year-over-year. Imports of Chinese electrified vehicles went from just 500 in 2021 to nearly 100,000 in 2025.
Mexico's EV market is small but growing, comprising 9% of new-car sales. While global brands have mostly ignored the market, BYD is taking advantage with lower-priced vehicle offerings that the middle class is eating up.
The Chinese company's rapid success is prompting a reaction from the Mexican government. It implemented tariffs as high as 50% at the start of the year amid pressure from the American government.
Still, these moves might fall short in reversing the trend. For one thing, BYD proactively took on the tariffs by incentivizing drivers to buy vehicles before the end of 2025. It appears to be willing to take on much of the price burden if necessary.
Chinese government subsidies and BYD's huge production volumes allow them to produce EVs at very low cost, both of which help boost the company's fortunes. China is also encouraging automakers to export as much as possible.
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The result is "significantly more accessible prices than its American, European, or Japanese competitors, which has been well-received in a price-sensitive market like Mexico," Matías Gómez Leautaud, Eurasia Group lead analyst for Mexico, told Bloomberg.
This all comes as brands such as Tesla, Ford, and Nissan are hesitant to invest in bringing EVs to Mexico. In that context, it's good to see brands stepping into the void to give Mexican drivers access to vehicles that are better for the planet than gas-powered alternatives.
For Mexicans, other factors make BYD EVs very appealing. The brand offers lower interest rates on its loans than the market average.
Electrified vehicles are incentivized through government policy. Regionally, there are areas where they are allowed on the road in low-air-quality instances when gas-powered vehicles are not. Fuel savings are another major appeal for drivers.
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Overall, the picture looks ripe for BYD and other Chinese EV makers to keep dominating a neglected market.
"If you go to any city in Mexico, you can see that BYD is the darling," said BYD Americas president Stella Li, per Bloomberg.
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