Jetour to set up combustion and electric vehicle plant in Mexico

Jetour, the Chinese SUV manufacturer, has announced the opening of a gasoline and electric vehicle assembly plant in Mexico in 2024. The objective of this factory is to produce vehicles with export quality to the United States, Canada, and Latin America. In alliance with the automotive sector company LDR Solutions, Jetour could invest over one billion dollars in installing its new plant in the Aguascalientes or Guanajuato markets, although the investment amount and plant location are yet to be defined.

The announcement of Jetour's assembly plant in Mexico occurs in the context of an increased presence of Chinese companies nationally due to nearshoring. According to SiiLA Market Analytics, between 2019 and 2022, the number of tenants of Chinese origin in Mexico almost tripled, with companies in the vehicle and parts sector occupying around 80% of the space in terms of square meters.

Jetour indicated that the official presentation of the Chinese firm will take place in March of this year, and the company's introduction strategy in Mexico will have several stages. In the first three quarters of 2023, the first Jetour dealerships will start operating, and the marketing of internal combustion SUVs imported from China will begin. By the end of 2023, the company will introduce a hybrid unit to the Mexican market.

According to Jetour's executives, the company plans to sell 20,000 units in Mexico during its first year to position itself among the top 15 distributors of vehicles nationwide by sales volume. Jetour will import auto parts and technology from China to start operations, although the company's goal is to establish a network of local suppliers. Additionally, Jetour will operate with the support of CATL, one of the largest international manufacturers of batteries for electric cars, according to LDR Solutions' executives.

Once Jetour's plant has a total production capacity for vehicles in Mexico, the company will seek to set up or expand into more profitable and larger markets, such as the United States.

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