Latin America Advisor

Energy Advisor

A Publication of The Dialogue

Can the U.S. Curb Chinese Production of EVs in Mexico?

Mexico is under pressure from the United States to curb Chinese electric vehicle manufacturing within its borders. // File Photo: U.S. Department of Energy.

Mexico is holding back on some incentives to Chinese electric vehicle manufacturers under pressure from the United States, which is concerned about Chinese automakers seeking to avoid U.S. tariffs by producing cheap electric vehicles in Mexico for the U.S. market, Reuters reported in mid-April. How significant is investment from Chinese electric vehicle makers in Mexico? How likely is Mexico to ramp-up incentives for Chinese automakers to invest in Mexico? How can Mexico continue to attract foreign investment from China while maintaining good relations with the United States?

Larry B. Pascal and Carlos Alva, members of the International Practice Group at Haynes and Boone: “In recent years, the importation of Chinese vehicles to Mexico has increased considerably, primarily due to their competitive prices. For example, according to the Mexican Association of Automotive Distributors, in 2023, up to approximately 20 percent of the total new vehicles sold in Mexico were vehicles fabricated and imported from China. However, no Chinese automaker to date has opened a plant in Mexico, although Chinese automakers are reportedly scouting for manufacturing sites in Mexico. Although the increase in the popularity of Chinese vehicles in Mexico is evident, it is unclear if Mexico would grant incentives to Chinese manufacturers to establish automobile production plants in Mexico in the face of…”

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Brazil’s President Fires Petrobras CEO Prates

Brazil’s president has fired Petrobras CEO Jean Paul Prates. The two had clashed over dividends. Lula reportedly plans to tap Magda Chambriard, the former head of Brazil’s oil and gas regulatory agency, to replace Prates. // File Photo: Brazilian Government.
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About the Energy Advisor

A sister publication of the Inter-American Dialogue’s daily Latin America Advisor, the weekly Energy Advisor captures fresh analysis from business leaders and government officials on the most important developments in oil and gas, biofuels, the power sector, renewables, new technologies, and the policy debates shaping the future of energy in the Western Hemisphere and beyond. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.


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Staff

Gene Kuleta

Editor
P. 202.463.2920
E. gkuleta@thedialogue.org

Carl David Goette-Luciak

Reporter

Nili Blanck

Reporter