GAC wants to be the first Chinese carmaker to produce automobiles in Mexico
Chinese carmaker GAC became the first Chinese automaker to build cars in Mexico when it announced on Wednesday that it will start operations at a vehicle assembly plant there in the second half of 2026.
“This milestone is part of the global One GAC 2.0 strategy, under the ‘In Mexico for Mexico’ approach. Aimed at strengthening our local presence, promoting sustainable development, and bringing us even closer to our customers,” the company said in a statement.
“This strategic decision reflects the brand’s confidence in the country’s potential, in the strength of its automotive industry. In Mexico’s manufacturing capabilities, which are globally recognized for their high standards of quality and competitiveness,” it added.
The company said that in its initial phase of operations, the factory will have a flexible assembly setup capable of adapting to different types of vehicles and technologies, including internal combustion, hybrid, plug-in hybrid, and electric vehicles. But it did not specify the location of the plant or the amount of investment. By building a plant in Mexico, GAC would be able to avoid this year’s tariff rise of up to 50% on Chinese car imports.
Under a strategy known as «local assembly,» JAC Motors, another Chinese carmaker, assembles its cars in Hidalgo using parts that are imported from China.
