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China Wencan Group Mexico Expansion

  • 9th October 2025

According to relevant reports, the Chinese company Wencan Group is expanding its factory in Guanajuato, Mexico, to better serve the North American electric vehicle supply chain. This initiative aims to respond to the global automotive industry’s shift towards electrification and leverage Mexico’s strategic position as a North American manufacturing hub.

Guanajuato state is Mexico’s largest automotive capacity base, with an annual capacity of about 1 million vehicles, attracting investments from international automakers such as Toyota, Volkswagen, and General Motors. Wenchan Group’s expansion project is expected to enhance its production capabilities in precision die-casting, particularly for key components like electric vehicle thermal management modules and oil coolers.

Wencan Group invested in the Mexican market as early as 2014 through a subsidiary, and this expansion further consolidates its global layout. The company has entered the North American OEM supply chain system and collaborates with enterprises like Tesla, benefiting from nearshoring trends and U.S.-China trade dynamics.

This project is expected to promote local employment and economic growth while enhancing Mexico’s role in the global electric vehicle supply chain. Mexico’s automotive industry is primarily export-oriented, mainly targeting North America, accounting for 87% of total production, with 77.5% exported to the United States.

Wencan Group’s strategic expansion reflects the proactive overseas layout of Chinese component enterprises, helping to address supply chain restructuring challenges and provide more localized support for the North American electric vehicle market.

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