Background on the Issue
The lack of transparency from some Chinese automotive brands has caused frustration within the industry, as it puts conventional competitors at a disadvantage who do report their figures and complicates decision-making processes. This issue stems from the fact that certain Chinese brands are not reporting their sales data to Mexico’s National Institute of Statistics and Geography (INEGI), making it difficult to obtain a comprehensive view of the automotive market.
Current Situation
Most Chinese automotive companies, such as MG, Changan, Great Wall Motor, Foton, Auteco, and Motornation, have been reporting their sales data to the INEGI since they started their operations. However, brands like Chirey, Omoda, and Jetour initially participated in the INEGI sales survey but later opted out until they recover their sales. Meanwhile, companies like BYD, Geely, GAC Motor, SEV, Bestune, and Zeekr have begun operations but haven’t reported their sales figures to the INEGI, nor have they specified when they will.
Impact on the Industry
The absence of sales data reporting leads to distortion and a lack of transparency, which affects decision-making processes. Currently, the INEGI lacks the authority to sanction Chinese companies for not providing their sales data. The institute can only receive and compile the information, but there’s no obligation for companies to comply.
Proposed Solution
To address this issue, the Association of Mexican Dealers of Automotive (AMDA) is advocating for an adjustment to the Norma Oficial Mexicana (NOM) that governs commercial information. This update would specifically target the automotive industry, ensuring transparency, data reliability, accurate statistics, and consumer protection. Moreover, it would empower authorities to impose sanctions on non-compliant companies.
Relevance of Chinese Brands
Chinese automotive brands have gained popularity in the Mexican market due to their competitive pricing, hybrid and electric technologies, advanced gadgets, luxury offerings, financing options, and other attractive features. These brands already account for 8.2% of the Mexican auto sales market, with companies like MG, Changan, Foton, GWM, JAC, and Motornation reporting sales of 56,086 units. Unreported brands are estimated to have sold at least an additional 50,000 units.
Key Questions and Answers
- What is the main issue? The primary concern is that some Chinese automotive brands are not reporting their sales data to the INEGI, making it difficult for other companies and industry stakeholders to have a complete understanding of the Mexican automotive market.
- Why is this a problem? The lack of transparent sales data leads to distorted market perceptions, complicates decision-making processes, and puts conventional competitors at a disadvantage.
- What is AMDA’s proposed solution? AMDA is advocating for an adjustment to the NOM that would ensure transparency, data reliability, and consumer protection in the automotive industry while enabling authorities to impose sanctions on non-compliant companies.
- Which Chinese brands are relevant in the Mexican market? Brands like MG, Changan, Foton, GWM, JAC, and Motornation have gained popularity in Mexico due to their competitive pricing, advanced technologies, luxury offerings, and financing options. These brands already account for 8.2% of the Mexican auto sales market.
