Chinese automaker BAIC readies to reveal location of US$ 2 billion plant in Mexico

26 April, 2018

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Officials of Chinese state-owned automaker Beijing Automotive Industry Holding Co., commonly known as BAIC, prepare the announcement of an investment of at least US$ 2 billion for the construction of an assembly plant in Mexico. It would be tentatively in May when the company announces where it will be installed, reported Expansión, citing anonymous sources within the company.

Currently the company makes the final assembly of its models in Veracruz, where the vehicles arrive from China in the form of CKD kits and then are put together at a facility owned by Mexican company AT Motors, which also assembles commercial vehicles for other Chinese brands like Foton.

By not doing manufacturing processes, BAIC pays a 21% tariff for each imported unit, so the company seeks to install a manufacturing plant in Mexican territory and avoid this tax, while using the commercial treaties of Mexico to export to other markets.

The manufacturer already markets its models in Chile, Peru, Colombia, Argentina and Venezuela, but there is interest in entering the United States.

Officials from several states have had approaches with the corporation in an attempt to house the new plant, including Sonora, Coahuila, Nuevo Leon, Puebla, Hidalgo, Guanajuato, Yucatan and Quintana Roo.

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