Chinese automaker BAIC says project for Mexico plant still on

20 December, 2018

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Officials of the Chinese automaker BAIC were in Mexico in recent days and reiterated their intention to start the construction of a manufacturing plant in 2020, the group’s first in the Americas. The facility would begin operations in 2022 to produce both electric and internal combustion vehicles with a staff of 2,000 employees, local media reported.

During his third visit to Mexico to relaunch the brand, the executive vice president of BAIC International, Li Xingxing, said the company intends to initially serve the Mexican and Latin American market with this plant, while in the U.S. market is not contemplated to venture into the short term.

Samuel Echeverria, Operations Director of BAIC in Mexico, noted that eight states are competing over the installation of the plant, so they’re still weighing in the best location. According to the official, the plant will have an initial capacity to build 20,000 internal combustion vehicles and 10,000 electric vehicles annually.

In 2017, BAIC opened a final assembly plant in the state of Veracruz where completely knocked-down (CKD) kits arrive from China. Since no manufacturing process is carried out, the company pays tariffs for each imported unit, which would be avoided when formally establishing a plant in the country.

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