GAC to Begin Vehicle Assembly in Mexico in 2026

Chinese automaker GAC is preparing to begin assembling vehicles in Mexico during the fourth quarter of 2026, marking a new stage in the company’s expansion in the country and making it the first Chinese automaker to establish local assembly operations.

GAC Mexico said the operation will initially follow a Semi Knocked Down (SKD) model, in which vehicles will arrive in separate components and be assembled locally. The company has not yet disclosed the investment amount or the exact production capacity of the operation.

The move is part of GAC’s “In Mexico, for Mexico” strategy, aimed at strengthening its presence in the Mexican market while expanding its local operations. The company has been evaluating ways to establish assembly activities in the country as Chinese automakers face higher import tariffs on vehicles produced in China.

GAC has sold approximately 16,500 vehicles in Mexico since entering the market nearly three years ago. Its distribution network currently includes 30 dealerships, with plans to reach 40 locations by the end of 2026.

The automaker is also expanding its product lineup. GAC now offers 10 models in Mexico, compared with four when it initially entered the market. Among its latest additions is the GS7 PHEV, the brand’s first plug-in hybrid SUV introduced in the country, which offers a combined driving range of more than 1,000 kilometers.

GAC is also preparing to launch the GS4 REEV, adding another electrified powertrain option to its Mexican lineup.

The company’s local expansion comes as Chinese automakers continue increasing their presence in Mexico, using the country not only as a growing consumer market but also as a potential manufacturing and regional production base. GAC’s assembly operation could further strengthen Mexico’s position as a strategic location for Chinese automotive companies seeking greater local integration.