Navigating 50% tariffs: strategic options for Chinese automakers in Mexico

Starting in January 2026, Mexico officially raised tariffs on Light Vehicles (LVs) from 20% to 50%, applying only to countries that do not have a Free Trade Agreement (FTA) in place. While the change in rate affects many markets, we expect the most significant impact to be felt in China and India. These measures have been under discussion for months and were formally announced by the Mexican government in mid-December. In recent years, sales of Chinese-made vehicles have rapidly increased in Mexico, incl ...