(Yicai Global) May 26 -- Beijing Automotive Group Co.'s first production line in Mexico began operations in the city of Veracruz on May 23, state-owned news agency Xinhua reported.
With Mexico's free trade agreements covering 46 countries, said Dong Haiyang, president of BAIC International Development Co., Chinese carmakers investing in the country are able to enjoy preferential tariffs and sell their products to Central and South American markets via the port in Veracruz, capitalizing on a rich supply of local parts and geographical advantages.
Mexico is a major car-making country in Latin America, with an annual output of more than 3 million vehicles. BAIC set up its first 4S (sales, spare parts, service, survey) store in the country last year, and now has 10.
The two countries are both top vehicle manufacturers, with great prospects for cooperation in such fields as research and development, complementary components and new-energy vehicles.