Chinese automakers want to expand in Mexico

At least three Chinese automakers are preparing to produce vehicles in Mexico or expand existing operations, the Mexican ambassador to China said on Monday, in what would be a boost to one of the Latin American country’s top export industries.

José Luis Bernal

, Mexico’s ambassador to China, said that over the past year and a half his office has seen more interest from Chinese firms looking to make cars in Mexico.

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Speaking at an event in Mexico City, Bernal listed Chongqing-based carmaker Changan , electric car maker BYD , and Anhui Jianghuai Automobile Co, known as JAC , as actively eyeing production facilities in Mexico.

Changan

and BYD do not have production facilities in Mexico yet, and while JAC does, Bernal said the firm is considering an expansion .

He added that the companies are aiming to begin the expanded Mexican operations sometime in the next year.

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The firms did not immediately respond to requests for comment.

Meanwhile, last year, automotive exports from Mexico fell for the first time in a decade, dragged down by weak demand from outside the United States , and Mexican carmaking is likely to suffer fresh reversals in 2020 , an industry group said on Wednesday.

Carmaking

is a pillar of Mexican manufacturing, and a forecast by the outgoing head of Mexican automotive industry association AMIA that output and exports would decline again in 2020 does not augur well for Mexico’s stagnant economy .

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“It’s not a matter of the plants’ capacity, it’s about how much of this production the market is absorbing,” departing AMIA president Eduardo Solís told a news conference. “We’re seeing major falls at a global level .”

Last year, Mexico’s auto production slipped by 4.1% to 3,750,841 units , national statistics agency INEGI said. It was the second annual decline in a row, and the biggest since the recession Mexico suffered in 2009 after the financial crisis.

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