Mexico has consolidated its position globally as the fifth-largest automobile assembler, with luxury vehicles already an important base of national manufacturing, with brands such as BMW, Audi, and Mercedes-Benz.
Therefore, the premium brand Hongqi, part of the Chinese FAW Group, not only plans to sell its vehicles in the country starting in the second quarter of 2025, but also plans to assemble them at some point to take advantage of this national knowledge.
“We believe the Mexican market is very large. Despite annual sales of 1.5 million cars, the average salary and per capita GDP reflect stable economic development. Consumers here are more inclined to choose luxury and high-end cars, and we believe our cars have the design, quality, and technology to offer a unique experience to the country’s consumers,” explained Wang Chengjie, general manager of Hongqi for the Southeast Asia and Latin America region and for the import and export division of the FAW Group.
He stated that they will first open 20 showrooms in the country’s main cities, which will allow them to cover 70 percent of the market; later, they will continue their commercial expansion to reach between 30 and 40 of these units.
These are locations called Hongqi Brand Experience Centers, a comprehensive after-sales service concept, with which they will offer a high-end service system.
As a key factor for its global expansion, the brand has signed a strategic agreement with the five main automotive distributor groups in Mexico.
The company’s goal is to build consumer confidence, a fundamental step for buyers of premium-segment vehicles.
“After this, we believe we can attract local assembly with sufficient capacity to offer sales in Mexico and surrounding countries,” he explained, emphasizing that his focus is on Latin America, as this is also the first step in Hongqi’s expansion in the region.
Wang Chengjie clarified that the plant they would build in the country could be a direct investment or one with a local partner, such as the one FAW has with Giant Motors Latin America to assemble commercial trucks.
Tariffs Don’t Stop the Engine
Hongqi’s general manager for the Southeast Asia and Latin America region clarified that the potential trade war doesn’t dampen its interest in the Mexican market and its international expansion, as he considers them temporary.
“These concerns are reasonable, but I want to emphasize that this will be temporary, not permanent. All these problems with the United States will not be resolved by raising tariffs,” he stated.
He commented that the brand offers a variety of models, including sedans, SUVs, and multipurpose vehicles, covering different power sources such as fuel, hybrids, plug-in hybrids, and electric vehicles.
He added that Hongqi seeks to consolidate its presence in the Mexican market and position itself as a benchmark.
Source: milenio
