Recent discussions have focused on the likelihood of Chinese automakers penetrating the U.S. car market with affordable vehicles, potentially overshadowing traditional American manufacturers. However, it’s important to note that no Chinese carmaker currently sells vehicles directly in the U.S.; the few Chinese-manufactured cars available here are marketed under well-known brands. For instance, the Buick Envision, Lincoln Nautilus, and several Volvo models in the U.S. are produced in China.
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Mexico’s Chinese Chevys
Furthermore, well ahead of any Chinese automotive surge, President Biden imposed a 100-percent tariff on electric vehicles imported from China, which adds to the existing 2.5-percent tariff on all cars and trucks brought into the United States. This significantly hinders the prospect of Chinese EVs disrupting the U.S. auto market.
In contrast, the scenario in Mexico is markedly different.
General Motors’ Chevrolet brand enjoys tremendous popularity in Mexico, supported by a robust dealer network and affordable offerings.
However, the notion of affordability varies significantly between the U.S. and Mexico. While American consumers often avoid subcompact cars, they remain appealing for Mexican buyers, provided they are priced competitively. To achieve these lower price points, Chevrolet has sourced a complete lineup of vehicles from China, which come at a fraction of the cost of those sold in the U.S.
In 2023, Chevrolet sold a total of 173,000 vehicles in Mexico, with 74,000 of these manufactured in China. Despite a hefty 20-percent import tariff on automotive goods in Mexico, these Chinese-made cars and crossovers remain attractively priced.
Meet the Aveo
Introducing the Aveo. Although a Chevrolet Aveo was available in the U.S. for several years, it failed to gain traction. However, in Mexico, it has become the top-selling model for Chevrolet, and it’s imported from China. Since its debut last year, nearly 22,000 Aveos have been sold, available in both sedan and hatchback forms.
Chevrolet markets seven models that are manufactured in China, all produced through its joint venture with the Shanghai Automotive Industry Corporation (SAIC). Here’s a detailed list of these cars along with their prices:
Chevrolet Aveo
Segment: Subcompact sedan and hatchback
Base price: $306,600 MX ($15,950)
Based on: Wuling Xingchi
Tornado
Segment: Small commercial van
Base price: $299,900 MX ($15,600)
Based on: Wuling Hongguang V
Onix
Segment: Subcompact sedan
Base price: $334,400 MX ($17,400)
Based on: Buick Excelle (China)
Cavalier
Segment: Compact sedan
Base price: $385,900 MX ($20,100)
Based on: Chevrolet Cavalier (China)
Groove
Segment: Subcompact crossover
Base price: $387,900 MX ($20,200)
Based on: Baojun 510
Tracker
Segment: Subcompact crossover
Base price: $411,400 MX ($21,499)
Based on: Chevrolet Tracker (China)
Chevrolet Captiva
Segment: Subcompact crossover
Base price: $477,000 MX ($24,800)
Based on: Baojun 530
S10 Max
Segment: Compact pickup truck
Base price: $483,600 MX ($25,150)
Based on: Maxus T70
Additionally, Chevrolet imports other models into Mexico from outside the USMCA Zone:
Chevrolet Trax (Built in South Korea by General Motors)
Segment: Subcompact crossover
Base price: $500,100 MX ($26,000)
Montana (Built in Brazil by General Motors)
Segment: Small pickup truck
Base price: $533,400 MX ($27,750)
As noted by Sam Fiorani, Vice President of Forecasting at AutoForecast Solutions, Mexico lacks a national automotive industry, thus there is no nationalist inclination to reject vehicles made in China. Although Mexico is a significant producer of cars and trucks, there are no domestic brands, leading to a more open attitude towards imported vehicles.
It’s essential to mention that while importing Chinese-branded cars directly into the U.S. is unlikely, China is considering assembling vehicles in Mexico for export to the U.S. According to the USMCA trade agreement, vehicles produced in the U.S., Mexico, or Canada can be sold in any of these countries without incurring tariffs.
Additionally, vehicles imported to Mexico from China might not meet U.S. federal safety and crashworthiness standards. This does not imply that these vehicles are unsafe; rather, they may not be comparable to those sold in the U.S. and may be priced more competitively for that reason.
Finally, in Mexico, Chevrolet also offers a complete range of vehicles intended for the U.S. market, such as the Equinox EV, the Blazer and Traverse midsize crossovers, along with the Tahoe and Suburban SUVs. These vehicles do not come at discounted prices in Mexico compared to the U.S. and are often regarded as premium products for this reason.
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