GAC confirms Mexico assembly plant will begin operations in 2026, becoming first Chinese OEM to invest in local production
In an announcement on April 9, 2026, GAC confirmed that it will become the first Chinese automotive manufacturer to operate a dedicated assembly plant in Mexico when its new site becomes operational in the second half of this year.
The decision to open an assembly plant in Mexico reflects GAC's confidence in the potential of Mexico's domestic market, and in the country's automotive industry and manufacturing capacity. It forms part of its 'In Mexico for Mexico' approach.
By taking this approach, the automaker hopes to advance its 'One GAC 2.0' global strategy for international expansion through a model focusing on sustainable growth, local development and closer proximity to end-consumers.
Becoming the first Chinese OEM to open a plant on Mexican soil, GAC has invested in its long-term vision for growth in the Latin American market, highlighting the importance it has placed on responding not only to the current landscape, but anticipating how it might change in years to come.
Looking forward, GAC intends to use this step as a foundation for the future development of productive capabilities and the expansion research and commercial operations.
Operations at the new assembly plant
Once the plant opens, it will operate under a flexible assembly scheme for the first phase. During this phase, the factory will be capable of adapting to production of a range of powertrain types including ICE, hybrid, plug-in hybrid and electric.
It will also provide flexibility and agility in vehicle types, allowing for sedans, SUVs, trucks and crossovers to be assembled in accordance with fluctuations in demand and market conditions.
Models such as the EMZOOM, GS8 and AION UT will be manufactured in Mexico, as well as the GS7, which is due to launch in Mexico's national market in the near future.
Mexico a key growth market for Chinese OEMs
GAC's commitment to expanding operations in Mexico does not come out of the blue; it follows a trend of Chinese-based OEMs seeing rapid growth in international markets – particularly Mexico. In the 2025 financial year, 625,187 new vehicles were exported from China to Mexico, making it the top destination for new vehicle exports from China last year.
Although GAC looks set to be the first Chinese automaker to open an assembly plant in Mexico, it is far from the only one exploring the possibility. After a delegation visited Brazil and Mexico, reports have claimed that GM's joint venture in China, SAIC-GM-Wuling (SGMW), is in advanced negotiations to begin manufacturing vehicles in Mexico.
Meanwhile, Reuters has reported that BYD and Geely, along with Vietnam-based VinFast, are finalists in the bid to acquire Nissan and Mercedes-Benz's COMPAS facility in Aguascalientes, which will cease operations next month.
The presence of Chinese OEMs within the Mexican automotive market has grown rapidly and significantly in the past five years. The market share held by Chinese automakers in the Mexican market is estimated to have risen from essentially zero in 2020 to accounting for roughly 10% of sales in 2025.
So with the commitment from GAC to local production in Mexico; SMGW, BYD and Chery exploring similar strategies; and new entrants to the market such as Xpeng – which recently launched its G6 and G9 electric SUV models in Mexico – the growth in market influence of Chinese OEMs in Mexico looks set to continue, for the near future at least.
Nearshoring vehicle production to Mexico would fundamentally shift Chinese OEM's supply chains from an import-heavy model to a more regionalised footprint in North America and Latin America. By assembling vehicles closer to end-consumers, OEMs could reduce shipping costs, shorten delivery times and mitigate the tariff- and trade-related risks tied to importing large volumes of finished vehicles.
