Chinese automaker BAIC opens its first assembly line in Mexico

24 May, 2017

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Beijing Automotive Industry (BAIC) inaugurated the first Chinese car plant in Mexico to assemble its own-branded vehicles as it looks to gain a firm foothold in the huge North American vehicle market.

At a US$ 30 million facility located in the municipality of Puente Nacional, Veracruz, the company started operations few weeks ago to assemble Complete Knock-Down kits (CKD) of the D20 sedan and hatchback models as well as the X25 SUV.

The site was jointly developed with Foton Mexico, a local contractor that assembles trucks and buses which started operations 10 years ago.

The company recruited just 300 workers to start operations and is expected to grow up to 500 by the end of the year. Around 6,000 units will roll out of this line in 2017. The output will increase to 10,000 units in 2018.

The units feature 18% of local content but the figure will climb to 50% over the next months once the local supply chain gets consolidated, company officials said.

BAIC fixed a sales target of 4,000 units for 2018, according to a press release.

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