BAIC Group’s Mexico Market Expansion Strategy Research

China’s automobile production has been ranked first in the world since it broke through the 10 million mark for the first time in 2009.After years of rapid growth,the production and sales scale reached 29 million in 2017.In 2018,affected by macroeconomic and policy factors,the production and sales volume of automobiles has declined for the first time since 1990.Due to the huge base number of production and sales,it is hard to maintain the era of high-speed growth.With the cruel competition in the domestic market,enterprises must seek new markets and opportunities.Entering overseas markets and participating in transnational operations has become an inevitable choice for enterprises to cope with fierce competition in both international and domestic markets.At the same time,with the opportunity of the national development strategy“Belt and Road”,domestic automobile brands has ushered in new opportunities,and major enterprises have accelerated overseas layout and expansion.As one of the top five automobile groups in China,BAIC Group always insists on “going into the markets with production capacity” and has the strength and opportunity to open up the international market.According to the “13th Five-Year Plan” of BAIC Group,it will focus on the construction of four major projects in Mexico,South Africa,Iranand Yunnan Ruili.Among them,the one in Mexico is a key springboard for breaking through the North American market and radiating Central and South America.It is an important part of realizing the strategic layout and support for the Group.The Group plans to build the Mexican market into a model for overseas market expansion.In this context,this paper conducts a systematic analysis of BAIC’s expansion of the Mexican market.By analyzing the development status and overseas layout of BAIC,it is necessary to clarify the necessity and urgency of BAIC’s “going out”strategy.Also,by analyzing the strategic position of the target country Mexico,and other objective advantage factorssuch as production factors,demand conditions,horizontal competition,government and other factors.Conclusion is made that it is feasible to form the entry of BAIC into the Mexican market.Through SWOT analysis,the strategic positioning of SO in the Mexican market is derived,and according to the decision-making influencing factors of the overseas market entry mode,the production investment of the Mexican market is determined.Using the Ansoff product-market matrix analysis,it is recommended that BAIC adopt the market development strategy in the Mexican market and formulate corresponding strategic implementation and safeguard measures to provide a useful reference for BAIC to fully enter Mexico and even the Latin American market,also for other domestic auto enterprises with independent brands to enter overseas markets.