Changan’s Growth Strategy in Mexico and Latin America
Despite the slowdown in Mexico’s car sales market, Chinese automaker Changan México aims to boost its market share by 1 percentage point through the introduction of new hybrid vehicles. The goal is to establish Mexico as a distribution hub for Latin America, leveraging their new sustainable mobility technology called iDD (Intelligent Dual Drive) with extended electric battery autonomy.
Background on Changan and its Relevance
Changan, a prominent Chinese automotive manufacturer, has been tasked by its corporate entity to manufacture, develop, and commercialize vehicles in Mexico and across Latin America. The company’s commitment to sustainability is evident through its iDD technology, which focuses on hybrid and electric vehicles.
Current Status and Future Plans
Alfredo Portillo, Changan México’s Marketing Director, stated that negotiations for the manufacturing plant location in Mexico are ongoing. The Chinese corporate is awaiting international trade developments before making final decisions.
“Mexico is a priority market, which is why we are bringing various models and different energy options. Our plan is to grow aggressively with our distributors; we currently have 67 sales points, and our target is to reach 80 by the end of this year,” Portillo explained.
Key Actions and Impact
- New Model Introductions: Changan will launch four new technology models and two combustion models, aiming to increase unit sales in Mexico throughout 2025.
- Market Performance: By April’s end, Changan reported a 142% growth compared to the previous year, achieving a 1% market share. The target is to reach approximately 2% market share.
- Vehicle Lineup for 2025: Nine vehicles will be introduced for Mexican consumers, with a focus on hybrid technology (the most demanded) and one fully electric vehicle.
- Notable Models: Deepal S07, Changan’s first electric vehicle in Mexico, and other models like Alsvin, Honor S, Hunter Work, and Hunter Chasis cater to the last-mile delivery and corporate fleet sectors.
- SUV Success: Changan’s CS35 Plus and CS55 Plus models have achieved 212 and 92 sales respectively, solidifying their position as heavyweight SUVs for the brand.
Changan’s Latin American Expansion Plans
Portillo announced that Changan intends for the Mexican corporate to oversee all Latin American operations, aiming to grow primarily in Mexico.
Key Questions and Answers
- When could Mexico become a Latin American hub? According to Portillo, this transition is imminent. Changan has near-term plans for industrialization, which will help establish Mexico as the central hub for Latin America rather than just for Mexico.
