(Adds comment from Mexican automakers association)

By Marcelo Rochabrun

SAO PAULO, May 7 (Reuters) – Automakers in Brazil warned on Tuesday of the threat from cheap imported cars from Mexico, as the end of a cap on bilateral trade in the sector presents a new challenge to the dominance of local manufacturing in Latin America’s largest auto market.

The Brazil-based arms of global automakers such as General Motors Co, Volkswagen AG and Fiat Chrysler Automobiles NV, whose local plants have long benefited from high tariffs, said through national industry group Anfavea that they struggled to match Mexico’s low production costs.

The Brazilian industry’s warning echoes the concerns of U.S. President Donald Trump and U.S. labor unions about the threat posed by increasingly efficient Mexican factories