SAAG plans Mexico factory to meet demand and cut tariffs

Shanghai Auto Assembly Group (SAAG) confirmed that it will finalize the location of a new vehicle assembly plant in Mexico this year, a move the company describes as a strategic necessity to mitigate high tariffs and meet rising regional demand.

The announcement coincides with the integration of Jiangling Motors Corporation (JMC) into SAAG’s Mexican operations, marking a transition from pure importation to domestic manufacturing.

“The objective of manufacturing in Mexico is not an option, but a requirement for survival and growth. If high tariffs persist—around 50%, which is the current reality—there is no way to remain competitive in Mexico,” said Zaid Leyva, general director, SAAG, in an interview with El Economista.

Long-Term Commitment and After-Sales Strategy

Management emphasized that its expansion into Mexico is a long-term strategic commitment rather than a short-term market test. Leyva criticized competitors that prioritize volume over infrastructure:

“Mexico is not our experimentation laboratory. We are entering with a long-term vision and solid foundations. Some brands focus on aggressive pricing but lack after-sales support. That is not our approach.”

Ding Jun echoed this perspective, describing Mexico as a “demanding and competitive market,” while expressing confidence in the company’s strategy:

“This is a long-term project. We are committed to strong management and, above all, to customer well-being. That is why we are prepared to overcome all challenges.”

Click here read the original content