intgames Chinese Carmakers Are Taking Mexico by Storm While Eyeing U.S.

Behind a crumbling brick wall in a working-class neighborhood of Mexico City lurks a seemingly innocuous car lot. But it could be a sign of a potentially grave threat to the North American auto industry.intgames

A makeshift dealership for the Chinese electric vehicle company BYD has sprung up in this dusty lot. Esteban Alegría, an employee, said the dealership was selling cars as fast as they arrived from China. Mr. Alegría’s top seller is the Dolphin Mini, a small but capable four-door electric compact that costs about $18,000, about $10,000 less than the cheapest battery-powered vehicle available in the United States.

Mr. Alegría’s dealership is one of dozens that Chinese carmakers like BYD, Chery, Geely and SAIC are opening up around Mexico as they establish a foothold in North America.

Chinese carmakers are effectively barred from the United States by tariffs that double the sticker price of vehicles imported from China, and they are not yet manufacturing significant numbers of vehicles in Mexico that could be exported across the border.

But their ambition to expand overseas is on vivid display in Mexico and across Latin America, Asia, Europe and Africa. Ads for Chinese brands are in airports and soccer stadiums and loom above Mexico City streets on large billboards. Chinese cars, both gasoline and electric models, are an increasingly common sight.

BYD and others are also looking for places to build factories in Mexico, although none have announced firm plans. Initially, the plants would serve Latin America, part of a campaign by Chinese automakers to erode the dominance of Japanese, American and European carmakers in places like Brazil and Thailand.

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