BYD this year launched its first hybrid pickup, the SHARK, in Mexico, drawing attention to why it chose this Central American country for its debut. Traditionally, Chinese auto exports focus on markets like Russia, the Middle East, and Southeast Asia, with South America’s primary market being Brazil. Mexico, however, has emerged as a major player for Chinese pickups.
In fact, 2023 data shows that Mexico ranks as the second-largest market for Chinese car exports, following only Russia. When it comes to light-duty trucks under 5 tons, Mexico takes the top spot, making it the largest buyer of Chinese pickups.

Over 50,000 light-duty trucks from Chinese brands were shipped to Mexico, almost double the amount sent to Australia, the second-largest market for this category. Although export revenues from Mexico and Australia are similar, it suggests that Chinese vehicles sold in Mexico are generally more affordable, which reflects the difference in purchasing power between developing and developed markets.

With the SHARK’s debut in Mexico, BYD is likely to keep its pricing competitive. For context, last year Changan's Lantuozhe pickup launched in Mexico with a price range equivalent to 210,000 to 260,000 RMB.

Mexico ranks as the sixth-largest car manufacturer globally, with an annual output of around 3.3 million vehicles, making it an attractive market. Chinese brands have been doing well here too; in 2023, MG ranked eighth in vehicle sales, Chery twelfth, and JAC sixteenth. Chery’s sales grew by a notable 343.9%, putting it on track to enter the top ten by 2024. Other brands like BYD, GAC, Geely, and Great Wall are also planning to expand their presence in Mexico.

For pickups specifically, BYD’s SHARK joins Changan's Lantuozhe as early entrants, with Chery and JAC also targeting the Mexican market. JAC already sells models like the T6 and T8 and plans to add the T9 and Hunter EV models, heightening the competition among Chinese pickup brands in Mexico.

BYD’s decision to debut its first pickup globally in Mexico, rather than China, indicates a “global-first” strategy. This approach, focusing on “easy-first, gradual growth,” allows BYD to gain traction in overseas markets before bringing products back to China.

Compared to Chery and Great Wall, BYD’s exports are still in the early stages. In 2023, BYD’s overseas sales totaled 240,000 units, while Chery exported over 900,000. For BYD, launching a competitive model like a pickup is crucial. Pickups are widely accepted in Mexico, a market where value-for-money is key. Mexican buyers prefer large, practical, and budget-friendly models, which the SHARK can deliver.
However, Chinese brands are not yet in the top ten best-selling pickups in Mexico, a market dominated by Japanese, American, and European brands. To gain a foothold, Chinese pickups will need to offer advanced features in smart technology, performance, and reliability.

Mexico’s annual pickup sales total around 160,000-170,000, ranking seventh globally, about half of China’s 320,000. In the first half of 2023, Chinese brands held around 9.32% of Mexico’s market share, leaving significant room for growth. Thus, the SHARK’s debut in Mexico carries symbolic importance, and BYD may eventually introduce it to the Chinese market as well.

Source : www.chinatrucks.com

Views : 5114

Tags : BYD Mexico