[Mexico] Chinese automaker JAC Motors aims to build 40,000 cars per year in Hidalgo
Chinese automaker JAC Motors aims to build 40,000 cars per year in Hidalgo
Chinese state-owned automaker JAC Motors is currently in an expansion phase to produce about 40,000 vehicles per year for both the Mexican and export markets.
The president of the Board of Directors of Giant Motors Latin America, Elias Massri Sasson, told Notimex news outlet that the company currently builds two SUVs and the subcompact J4 at the assembly plant located in Ciudad Sahagun, Hidalgo for the domestic market, but there’s plans to take advantage of the Mexico’s trade agreements.
Interviewed during the inauguration of a new dealership in Mexico City, the manager said the company has opened 15 sales points in the first 11 months since they formally started operations in the country.
The official added that the automaker plans include closing the year with 30 dealerships in operation and 30,000 units produced, of which 1,200 will be marketed in Mexico.
JAC Motors SUVs go on sale in Naucalpan
Vehicle is built in Hidalgo through joint venture with Chinese auto maker
The smaller of the two, the SEI2, has a base price of 259,900 pesos (US $13, 850); the larger SEI3 has a price of 279,000 pesos. Both carry a guarantee of five years or 100,000 kilometers.
Chinese sport-utility vehicles assembled in Mexico went on sale this week in Naucalpan, State of México.
The two models, manufactured in Mexico by Chinese state-owned JAC Motors in a joint venture with Giant Motors Latinoamérica, are completely assembled at a new factory in Ciudad Sahagún, Hidalgo.
The factory began production of the vehicles, which carry the “Made in Mexico” stamp, last month.
The smaller of the two, the SEI2, has a base price of 259,900 pesos (US $13, 850); the larger SEI3 has a price of 279,000 pesos. Both carry a guarantee of five years or 100,000 kilometers.
The new plant represents an investment of 4.4 billion pesos, half by Carlos Slim-owned Inbursa and half by Giant Motors with backing from the Japanese company Chori.
More dealerships are anticipated this year in Puebla, Aguascalientes, Jalisco, Yucatán and Chihuahua.
JAC Motors forecasts that 10,000 vehicles per year will roll off the production line in the first five years. In this first stage of operations, 1,000 direct and almost 4,500 indirect jobs will be created.
Elias Massri Sasson, the head of Giant Motors, says JAC’s arrival in Mexico will attract auto parts suppliers to Ciudad Sagahún and that in the near future existing infrastructure coupled with new technologies will enable the production of electric cars.
The Ciudad Sahagún plant is the fourth JAC factory in Latin America.
It looks like this venture, initiated in early 2017, is picking up speed now.
JAC’s Mexican brand influence enters to a new level
In March 2017, JAC passenger car completed its brand launch in Mexico and launched two S2 and S3 small SUV models. It officially entered the North American market and competed with mainstream global auto brands such as Nissan, Volkswagen and GM. In the first year of entering the Mexican market, JAC passenger cars realized an export of 1,541 vehicles. Through JAC’s excellent product quality and performance, and differentiated brand positioning, it has changed the negative impression of Mexican consumers on Chinese cars for a long time, and has been praised as ‘the preferred Chinese automobile brand’ by local mainstream automobile evaluation agencies.
Despite the increasingly severe market environment in Mexico, the overall car sales volume has declined for 12 consecutive months. JAC still achieved rapid growth in 2018. The annual export of passenger cars was 3,246 units, which was 110% higher than that in 2017, and the terminal sales volume was 2,800 units. JAC medium-sized SUV – S7, despite the price positioning surpassing Nissan Qijun and Volkswagen Tiguan L, with the advantages of fashion appearance, excellent workmanship, intelligent security technology configuration, etc., it won the end consumer favor
The JAC sales network layout has achieved initial success, achieving a total of 19 standard 4S stores, covering the major northern, central and southern states of Mexico, achieving a significant increase in the influence of the JAC brand throughout Mexico and improving the convenience of consumers’ car purchase services.
In 2019, the export of JAC passenger cars to Mexico is expected to exceed 5,000, pushing the influence of JAC brand in Latin America to a new level.
China’s JAC motors, Mexican billionaire making ground in LatAm
Those being manufactured are the JAC SEI 2 and SEI 3. The former has a starting price of 259,000 pesos (US$14,551) and comes with a five year/100,000km guarantee.
By November, JAC intends to launch a fully equipped sedan, and a larger 7-passenger SUV is expected shortly thereafter.
The company intends to have 10 sales points up and running by the end of the year. So far, approximately 350 SUVs have been sold, in 2017, local paper El Universal reported.
Giant Motors is owned by Mexican telecom tycoon Carlos Slim Helu.
Mexico’s Economy Minister Ildefonso Guajardo holds the model of a car during a news conference in Mexico City to announce a new plant for JAC Motors
Mexico has announced a 4.4 billion peso (US$212 million) deal to assemble Chinese cars in the central state of Hidalgo, amid calls for the country to diversify economic ties as tensions have risen with the US, its largest trade partner.
Hidalgo Governor Omar Fayad announced the deal between Mexico’s Giant Motors Latinoamerica and Chinese state-owned automaker JAC Motors at a news conference in the capital.
The plant in Ciudad Sahagun, about 65km northeast of metropolitan Mexico City, will produce two SUV models and the first cars are expected to roll off assembly lines in the second half of this year.
Fayad said the plant will begin with a capacity of 11,000 vehicles annually, with output ultimately rising to 40,000. The initial phase of the project is expected to create 1,000 direct and 4,500 indirect jobs.
The vehicles are initially aimed at the Mexican market, but there are hopes of distributing elsewhere in Latin America in the future.
“This automobile will proudly carry a label that will say ‘Made in Mexico,’” Fayad said, “and that should be a cause for great pride for the people of Hidalgo.”