The Baojun Yep Plus — I Mean, the Chevrolet Spark EUV — Lands in Mexico. Will This Turn the Tide for GM?

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If you can’t beat ‘em, join ‘em

It is not a secret for anyone that China has been rising as the uncontestable EV leader globally. Competition is arising in Europe and South Korea (mainly thanks to relatively protected markets and government support for locally produced EVs), whereas the US seems to be betting on protectionism to sustain ICEV production (thanks, Trump!), but the rest of the world is ripe for the taking … and the Chinese are not staying still. As a result, Legacy Auto has been losing sales (or will start losing them soon) to the Chinese newcomers in many markets where EVs keep growing fast. The response, for now, has been lacking: even the companies (somewhat) committed to the EV transition are still focused on improving their offers and gaining economies of scale in their markets of origin, as they can’t currently compete head-on with the Chinese.

However, Legacy Auto has another option: to use their massive capacity in China and leverage Chinese EV prowess and efficient supply chains to compete in overseas markets. Some companies have been doing this for a while (BMW, Renault, Kia), but others have only recently started. And the most recent bet from GM, which I had already mentioned, is the Baojun Yep Plus Chevrolet Spark EUV.

GM’s Presence in Latin America

GM is a very important brand in Latin America, boasting local production in Mexico, Argentina, and Brazil, also with former plants (now non-operational) in Colombia and Ecuador. Mexico has been the epicenter of GM’s EV push, with the Equinox EV, Blazer EV, and Optiq EV all being produced there.

Through the years, GM has also built a local lineup of affordable ICEV models focused on developing markets and not available in the US, including small sedans and hatchbacks (Aveo, Onix), city-cars (the recently deceased Joy), small SUVs/vans (Spin, Tracker), and small pickup trucks (Max). Nearly all these models are produced locally for the region, hence why I believe GM waited as long as it could to bring affordable EVs from overseas, lest it end up destroying its local manufacturing infrastructure.

But there’s no more time. BYD started its push over a year ago, and other Chinese brands have joined, dramatically increasing the availability of affordable EVs and taking market share left and right from the established manufacturers throughout Latin America. The options now are to compete immediately or to wait until more and more sales are taken by the newcomers … and GM is choosing to fight.

Chevrolet Spark EUV & the Future of GM

The Chevrolet Spark EUV is a 3.99m-long, square-ish vehicle that wants to look like an SUV despite its small size. It has a 42kWh battery good for 281 km EPA or 360 km NEDC range, and at a price of MXN$449,000 (USD$23,600) it sits in a reasonable spot vis-à-vis its competition.

According to Brazilian media, this same model will arrive in that country with three battery options: 30 kWh, 42 kWh, and 56k Wh, so new versions may soon accompany this one in the Mexican market.

Mexico was chosen as the first destination for the Spark EUV, and sales will start in late July. The country is known for its extreme vehicle affordability in general, which means that the Spark EUV will fight a steep battle to gain market share from ICEV competition. An obvious comparison can be made with the Suzuki Jimny, an ICEV with a strikingly similar design, which, despite significant off-road capabilities (that the Spark EUV does not have), 4×4 traction, and six airbags (to the Spark EUV’s four), costs only $500 more. As a side note, the extreme affordability of ICEVs in Mexico and Chile (compared with the rest of the region) is probably one of the main reasons why EVs have not gained market share there as fast as in other markets, like Colombia or Brazil.

Regardless, the price of the Spark EUV in Mexico does bring a positive feeling: it’s a good price and, if similar in other markets, it will mean the Spark EUV will be able to make inroads and perhaps gain back some market share from BYD, as well as taking some from its ICEV competition.

Of course, this is a temporary measure: as far as we know, GM is still planning to build an affordable EV in Mexico in the coming years, but meanwhile, the Spark EUV can serve to train salespeople, to get costumers used to EVs, and to keep market share and overall sales levels in these markets. However, with the dramatic distortion of North American supply chains courtesy of Tariff Man, this will certainly be an uphill battle for the company.

In a way, GM is still trying to look to the future, even if the US government is doing its best to return to a past that no longer is. If Trump gets his way, and EVs end up being an afterthought for US brands, then the affordable vehicles built in future Latin America will no longer be from GM, but instead from Geely, BYD, Changan GAC, Chery, or JAC, and with a bit of luck perhaps even from Kia, Renault, or VW. The US risks losing its leadership in what has long been a profitable market for its auto giants, simply because its president and Congress seem hell-bent on making EVs inviable and promoting a return to an ICEV technology that we all know has its days counted.