Finance and Economics APP Intelligence learned that, in order to reduce imports from Asia to Mexico and boost domestic manufacturing, Mexico's Deputy Minister of Industry and Trade, Vidal Llerenas, is negotiating with several industrial giants including General Motors (GM.US), Foxconn, and Intel (INTC.US) to start local production.

In a recent interview, Llerenas stated that General Motors and Foxconn are expected to announce plans later this month to replace products produced in Asia with products made in Mexico, with the Mexican government also in negotiations with Stellantis (STLA.US) and DHL. Intel has planned to substitute 12% of its products shipped to Mexico with locally produced ones.

Industry data shows that 40% of imported cars in Mexico come from Asia, with General Motors being the largest importer, of which 65% are made in China, followed by Volvo (VLVLY.US) at 54%, and Ford (F.US) with 24% of cars imported into Mexico being made in China.

In 2022, General Motors described it as 'the most convenient thing' by moving the production of Chevrolet Onix from Mexico to China and exporting it back to Mexico, instead of importing Onix manufactured in Brazil into Mexico. Production of other models targeted at the Central American market also shifted from Brazil to China, rather than being produced in Mexico.