The entry of Chinese automaker Xpeng Motors into Mexico is reinforcing the country’s role as a gateway for highly connected vehicles in Latin America. At the same time, the growing presence of these digital platforms is raising concerns related to data management, connectivity, and their potential impact on critical infrastructure and regional supply chains.
In March, the manufacturer announced its roadmap for the region, with the goal of doubling its global sales by 2026. The strategy calls for international markets to account for 20 percent of its total revenue, with the launch of the G6 and G9 models in Mexico serving as one of the company’s main entry points for its broader expansion across Latin America, Reuters reported.
According to Mexican daily El Economista, the Mexican market serves as a platform for the expansion of Chinese automakers across the continent. Xpeng, with a presence in more than 60 countries, plans to sell 2,000 electric vehicles (EVs) in its first year across three states in the country, as part of its international strategy.
On the economic front, Jorge Guajardo, former Mexican ambassador to China and a geopolitical risk consultant, told Diálogo that importing these vehicles offers limited benefits for the domestic industry. “Mexico is an automotive powerhouse, but these vehicles do not generate local revenue. Even with current tariffs, their entry does not strengthen the productive sector.”
He also questioned the effectiveness of current trade measures. He noted that tariffs of up to 50 percent have not slowed their entry into the market “nor altered their price in Mexico,” he said, warning that they continue to place pressure on the domestic and regional automotive industry.
Technological capabilities and operational performance
As vehicle operation becomes increasingly dependent on software, sensors, connectivity, and data processing, the rapid expansion of highly digitalized platforms has introduced new operational and cybersecurity considerations for governments and regulators.
“These vehicles incorporate sensors, cameras, and connectivity systems capable of transmitting large volumes of information,” Guajardo said. “This introduces new considerations regarding information management and the operation of connected technologies.”
Data collection and system exposure
Concerns surrounding these systems extend to privacy and cybersecurity, Infobae reported. High-end vehicles may incorporate multiple cameras, radars, and sensors that collect information from both the surrounding environment and the interior of the vehicle, including driver monitoring systems.
Norwegian cybersecurity researcher Tor Indstøy, through an independent initiative known as Project Lion Cage, documented data flows from Chinese-made EVs to external servers in China. The project, which examined connectivity, software architecture, and remote-access capabilities in connected vehicles, contributed to broader discussions in Europe regarding data management and cybersecurity in highly digitalized transportation systems.
“Data, including mobility patterns and metadata, is a high-value input for intelligence,” Guajardo explained. “It allows for tracking movements, identifying trends, and profiling users.”
Legal framework and regional expansion
China’s legal framework introduces another factor in the assessment of these technologies. China’s National Intelligence Law stipulates that all organizations and citizens must “support, assist, and cooperate” with the state’s intelligence efforts.
Chinese automakers have turned Latin America into a key market for expansion. A cornerstone of this strategy is the megaport of Chancay in Peru, operated by China and operational since late 2024. From there, commercial flows are expected to facilitate the distribution of Chinese vehicles and other goods throughout the region.
Analysts and security experts have warned that access to data and control over software in connected technologies can create security vulnerabilities, including risks related to surveillance, data collection, and interference.
Guajardo added that China maintains restrictions on the operation of foreign vehicles with high levels of connectivity in its own market. “If they do not allow it, Mexico should evaluate the situation using the same criteria. I just want to warn that adopting a neutral stance is insufficient in this context.”
Local production and market access
In Mexico, the most closely watched developments has centered on the COMPAS plant Aguascalientes, a joint venture between Nissan and Mercedes-Benz that ceased operations in May 2026. Chinese automaker BYD and Geely are among the companies reportedly interested in acquiring the facility, according to the Andrés Bello Foundation.
Guajardo said that Mexico lacks a regulatory framework to oversee the flow and use of data generated by these systems, limiting the institutional capacity to manage it. He added that Chinese automakers are responding to a long-term state strategy directed by Beijing.
According to the Mexican magazine Expansión, the growth of Chinese automakers is the result of years of coordinated planning and investment. Their international expansion responds not only to commercial objectives, but also to a broader political and strategic projection beyond China’s borders.
Regional security and digital sovereignty
The expansion of highly connected vehicles presents growing challenges for security, infrastructure, and data management in Latin America. In this context, the assessment of technologies with commercial applications and dual-use capabilities is becoming increasingly relevant for governments across the region.
Finally, Guajardo noted that this scenario reinforces the need for stronger regional oversight mechanisms capable of managing the growing volume of data generated by connected technologies. As digitally integrated vehicles expand across Latin America, governments will increasingly face questions related to cybersecurity, infrastructure protection, and digital sovereignty.
“Cheap will end up being expensive,” Guajardo warned, emphasizing that economic benefits must also be weighed against operational and security considerations.
