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China's JAC Motors unveils first vehicles assembled in Mexico

Xinhua | Updated: 2017-03-30 15:24

MEXICO CITY - JAC Motors of China has presented the first two SUVs manufactured in Mexico.

It happened after JAC signed an alliance with Giant Motors Latin America and the Inbursa financial group, owned by Mexican magnate Carlos Slim, which represents an investment of around 4.4 billion pesos ($236 million).

"It is significant for us to see our company enter the North America market, where Mexico plays an important and strategic role. We want to use this to gradually update our products and position the brand in a mature market with potential niche," David Zhang, deputy director-general of JAC International, told Xinhua on Tuesday.

The vehicles are being manufactured at a plant in Tepeapulco, in the central state of Hidalgo, which is expected to produce 10,000 vehicles over five years.

Zhang said that JAC products, especially light trucks, are already accepted in Mexico.

"We want to move forward step by step. First, we want to meet the demand of the Mexican market. There is a big market here and our SUV products are liked by young Mexican people, who will be our main consumers," he said. "We will then use this production base to extend our business to nearby countries, including all of Latin America and the Caribbean."

Jose Luis Romo Cruz, secretary of economic development for the state of Hidalgo, said this investment would put Hidalgo back on the international automotive map.

He said that China is a very important market for Hidalgo, which is seeking to bring Chinese investment toward the automotive, renewable energy, agricultural and aerospace sectors.

"The challenge facing our state is the same (as) all of Mexico is facing. We are at a stage where we are seeking the best way to diversify our markets and not rely only on the US," emphasized the official. "We are more than ready to receive Chinese investment."

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