Can higher tariffs really slow down consumer demand? In Mexico, the latest numbers suggest not—at least for now.
Sales of Chinese-brand vehicles surged nearly 30% in the first half of the year, reaching 137,525 units.
They captured 17% of Mexico’s new car market, up from 14% a year ago.
The growth came despite Mexico imposing a 50% tariff on vehicle imports from China and other Asian countries in January.
Mexican officials insist the figures don’t tell the whole story.
Deputy Foreign Trade Minister Luis Rosendo Gutiérrez argued that many automakers had stocked up before the tariffs took effect.
He added, “What’s important is not the sales figures… the measures have halted imports of vehicles from Asia.”
Government data shows imports of Chinese-brand vehicles fell 43% during the first five months of the year.
Chinese Auto Sales Stay Strong
Chinese automakers, however, continue to strengthen their foothold.
Geely recorded the fastest sales growth, while BYD remained the market leader despite a slight dip in deliveries.
Industry experts believe the momentum isn’t fading anytime soon.
Guillermo Rosales, head of Mexico’s automobile distributors’ association, said Chinese manufacturers are likely to absorb the higher tariff costs.
Because “Chinese automakers have a strong incentive to absorb higher costs than lose market share.”
For now, tariffs may be slowing imports—but they’re not slowing buyers.
