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GM, SAIC in talks to launch Mexico vehicle production

  • 20th April 2026

 

General Motors and its China-based joint venture SAIC-GM-Wuling are in advanced negotiations to begin vehicle production in Mexico following the implementation of new import tariffs earlier this year. The move would position Mexico as a production base linked to Chinese operations within the North American market.

The initiative follows a March visit by Huang Yaosong, executive deputy general manager, SAIC-GM-Wuling, to GM’s engineering center and manufacturing plant in Toluca. Huang led a delegation that reviewed plant operations, quality management systems, and after-sales services. According to Automotive Logistics,  the group “identified areas for product optimization and technical improvement” after assessing the facility.

“It is understood that the joint venture, after evaluating Mexico as a potential manufacturing base, is in advanced discussions to produce vehicles in the country,” Automotive Logistics reported. Huang said the initiative is expected to support long-term expansion: “We expect the new project in the Mexican market to become an important driver of business growth.”

The potential shift to local manufacturing comes as approximately 64% of the vehicles GM sells in Mexico are imported from China, placing the company among the largest distributors of Chinese-origin vehicles in the domestic market.

Chinese automakers continue to gain traction in Mexico. In 1Q26, they sold 42,808 units, a 25.3% increase year over year, bringing market share to 11.2%—on par with German competitors. According to the Asociación Mexicana de Distribuidores de Automotores (AMDA), this growth has been supported by aggressive promotional strategies and a value proposition aligned with local consumer demand.

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MEXCHAM continues building bridges between Mexico and China.

中国墨西哥商会将继续作为墨西哥与中国之间的桥梁,不断努力。

Cámara de Comercio de México en China

(MEXCHAM)中国墨西哥商会

www.mexcham.org

bj.info@mexcham.org