Renowned electric vehicle manufacturer from China, Xpeng, is determined to expand its global presence, and Mexico seems to be its next stop, right in the United States’ backyard. This move comes amid strong resistance from U.S. automakers to prevent Chinese manufacturers from selling cars locally.
Xpeng aims to double international sales this year and increase its global sales to contribute 20% of its revenue. With the launch of its G6 and G9 models in Mexico on March 25, Xpeng is on the path to achieving an important milestone in Q1.
In addition, Xpeng recently announced its first profitable quarter in the fourth quarter of last year, shattering all projections. Revealing the brand’s Mexico project, Xpeng founder and CEO, He Xiaopeng, said during the company’s post-earnings call:
“The brand will officially launch in Mexico at the end of March, introducing the G6 and G9 to deepen its presence in Latin America.”
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In the next four years, Xpeng aims to generate 70% of its revenue from international sales. But will the American market be a key contributor to its revenue by 2030? There is significant resistance from automotive groups in the U.S., which recently wrote a letter to President Donald Trump, urging him to block the potential entry of Chinese automakers.
MotorBiscuit reported the concerns put forward by the American automotive groups, comprising the Alliance for Automotive Innovation, the National Automobile Dealers Association, Autos Drive America, the American Automotive Policy Council, and MEMA, the Vehicle Suppliers Association.
The opposition comes two months after Trump revealed that he would welcome Chinese automakers. He said:
“If they want to come in and build a plant and hire you and hire your friends and your neighbors, that’s great, I love that.”
At present, the 2025 Commerce Department cybersecurity regulation prevents Chinese companies from selling vehicles in the U.S. due to security concerns. The automotive group has asked in the letter that the law remain in place.
In addition, the group raised serious concerns in the letter about “China’s ongoing efforts to dominate global automotive manufacturing and to gain access to the U.S. market.”
The letter added that “These actions pose a direct threat to America’s global competitiveness, national security, and automotive industrial base.”
“We also strongly urge the Administration to reject any attempt by Chinese manufacturers to circumvent these existing restrictions by establishing production facilities in the U.S.”
The group has made its stance clear that whether Chinese vehicles are manufactured in the U.S. or not, they still pose a threat to the country’s auto industry. The letter added:
“The market distortions and risks to the auto industry in the U.S. are fundamentally the same whether these vehicles are imported or produced domestically.”
Now though, with Chinese companies like Xpeng exceeding quarterly expectations, and with Trump’s openness to having Chinese companies produce in America, it remains to be seen if the U.S. automotive market becomes an open ground for new players to enter and compete.
