SexyChineseLady
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Despite the chip bans, China actually suffers far less from the chip shortages because they make a lot of the mature nodes used in products like cars.
China’s automakers flood Mexico’s markets thanks to ample chip supplies
While manufacturers in Mexico struggle with production, sales of Chinese cars are booming.
restofworld.org
Augusto Galván has worked with carmakers in Mexico for over 20 years. He runs a factory in central Mexico that builds custom air-conditioning systems for manufacturers in the region’s automaking industry, including Toyota and Volkswagen. During his time in the industry, his factory’s managers usually leased cars for company travel from carmakers Galvan has provided air conditioners to. But this year, the managers have gone with Chinese brands, like Chirey and MG, for the first time. “It surprised me that they would choose them, but it turns out they were the only ones immediately available at the dealerships,” Galván told Rest of World.
During the first six months of 2022, Chinese carmakers like MG, Chirey, and JAC Motors have increased their sales in Mexico by 200% compared to 2021, according to the Mexican Association of Automotive Dealers (AMDA). The spike is happening as non-Chinese carmakers manufacturing in Mexico — like BMW, Volkswagen, and General Motors — are struggling to get their hands on semiconductors to keep producing vehicles, both for export and the local market. Talking to car dealership managers, customers, and employees from the auto industry, Rest of World found that Chinese carmakers are seizing the opportunity provided by the semiconductor crisis to start selling to a consumer base that has long been buying cars from elsewhere.
“Mexico is one of the largest car producers in the world,” André Oliveira, business consulting partner for Sintec, a consulting firm specializing in the automotive, IT, and manufacturing businesses, told Rest of World. “However, it doesn’t have chip factories and depends on imports, mainly from Asian countries.” AMDA added that installing a semiconductor factory in Mexico takes at least three years.
China’s automakers flood Mexico’s markets thanks to ample chip supplies
While manufacturers in Mexico struggle with production, sales of Chinese cars are booming.
China’s automakers flood Mexico’s markets thanks to ample chip supplies
While manufacturers in Mexico struggle with production, sales of Chinese cars are booming.
restofworld.org
Augusto Galván has worked with carmakers in Mexico for over 20 years. He runs a factory in central Mexico that builds custom air-conditioning systems for manufacturers in the region’s automaking industry, including Toyota and Volkswagen. During his time in the industry, his factory’s managers usually leased cars for company travel from carmakers Galvan has provided air conditioners to. But this year, the managers have gone with Chinese brands, like Chirey and MG, for the first time. “It surprised me that they would choose them, but it turns out they were the only ones immediately available at the dealerships,” Galván told Rest of World.
During the first six months of 2022, Chinese carmakers like MG, Chirey, and JAC Motors have increased their sales in Mexico by 200% compared to 2021, according to the Mexican Association of Automotive Dealers (AMDA). The spike is happening as non-Chinese carmakers manufacturing in Mexico — like BMW, Volkswagen, and General Motors — are struggling to get their hands on semiconductors to keep producing vehicles, both for export and the local market. Talking to car dealership managers, customers, and employees from the auto industry, Rest of World found that Chinese carmakers are seizing the opportunity provided by the semiconductor crisis to start selling to a consumer base that has long been buying cars from elsewhere.
“Mexico is one of the largest car producers in the world,” André Oliveira, business consulting partner for Sintec, a consulting firm specializing in the automotive, IT, and manufacturing businesses, told Rest of World. “However, it doesn’t have chip factories and depends on imports, mainly from Asian countries.” AMDA added that installing a semiconductor factory in Mexico takes at least three years.
