This is happening all over the world. As the U.S. and European countries pile on the regulations that make our cars prohibitively expensive, the rest of the world is still looking for good, reliable, cheap transportation. China is filling the void. It is yet another area where the U.S. is ceding global leadership.

Last year, China was the leading car supplier to Mexico, exporting $4.6 billion worth of vehicles to the country, according to the Mexican Ministry of Economy. Even customers wary of EVs have been won over by affordable price tags. Tesla rival BYD sells its Dolphin Mini in Mexico for around 398,800 pesos, or about $21,300, a little over half the price of the cheapest Tesla.

“The Chinese automakers came to the country very aggressively,” said Juan Carlos Baker, former Mexican deputy minister for international trade. “They have very good promotions. It’s a good product that sells at a very reasonable price.”

 

Some Chinese EV makers, including BYD, have been looking for a further foothold in North America by exploring factory sites in the Mexican states of Durango, Jalisco and Nuevo Leon. The foreign investment would be an economic boost for Mexico. BYD has claimed that a plant there would create around 10,000 jobs.