JAC is positioning its Mexican assembly plant as a strategic buffer against the rising tariff pressure hitting Chinese automotive brands. While competitors scramble to clear existing stock through aggressive discounts, the company is prioritizing long-term stability over short-term sales volume.
Data from the national statistics agency, Inegi, shows JAC sold 5,760 vehicles between January and March, representing a 5% decline compared to the same period last year. Despite the dip, these units benefit from a domestic production label that shields them from the import duties currently rattling the broader market.
A strategic focus on stability
JAC executives argue that the current market environment rewards patience. Isidoro Massri, a top company official, says the firm is avoiding the price wars currently waged by other manufacturers.
“In the first semester everyone is throwing their weapons, bonuses, incentives and everything, and it’s not that it’s foreign to us, it’s something that was already in the plan,” Massri said. “We are not in a hurry to generate immediate volume. We are here, understanding the rules, knowing our game and prioritizing stability above all.”
Production figures reflect this deliberate strategy. JAC reported a 38.1% drop in manufacturing output during the first quarter. Massri insists this is a tactical adjustment to avoid the risks of over-inventory, which he describes as the primary threat to automotive profitability.
“The factory is made for one thing, which is to produce what the market asks for and requires, no more,” Massri said. “When you have over-inventory, bad decisions start and things happen that go against the profitability of the business.”
Instead of chasing retail volume, JAC is doubling down on its fleet business. The company currently counts major corporations like Walmart, MercadoLibre, Amazon, and Telmex among its clients. Recent months saw the addition of DHL, which took delivery of 81 vehicles to bolster its last-mile delivery operations in Mexico.
Massri views these corporate partnerships as the core of the company’s resilience. By integrating its vehicles into the daily operations of major logistics and retail firms, JAC aims to build a sustainable presence that transcends temporary trade disputes.
“We look for relationships with them through the years, for the long term,” Massri said. “It is not a matter of how much you are going to buy from me or what your purchase order is: it is about being allies, testing and getting to know each other.”
As the second half of the year approaches, JAC expects sales to rebound. The company plans to continue its measured approach, betting that its local assembly capabilities will keep it ahead of the regulatory hurdles facing its peers.
