Background on Key Players and Relevance
Mexico’s light vehicle production and exports decreased by 2% and 2.9%, respectively, in May due to the implementation of tariffs and trade tensions with the United States. This decline ends the growth momentum observed since 2020, when the industry faced the pandemic. The National Institute of Statistics and Geography (INEGI) reported these findings.
Mexico’s automotive industry produced 358,209 units in May, which is a 2% decrease compared to May 2024. However, this figure represents an improvement from April 2025, when the decline was 9%. According to the Mexican Association of the Automotive Industry (AMIA), May 2025’s production volume ranks as the second-highest in May since record-keeping began in 2001.
Key Export Figures and Brand Performance
In May 2025, Mexico exported 301,112 light vehicles, marking a 2.9% decrease compared to the same month in the previous year. Despite this, AMIA reported that the export volume remained above 300,000 units, making it the third-best result for a May month since records began.
Mazda, General Motors, and Volkswagen experienced significant tariff impacts, reducing shipments by 63.1%, 18.4%, and 32.4%, respectively. Conversely, Toyota and Honda saw substantial growth of 29.6% and 28.7%, respectively, during May.
Industry Insights and Future Outlook
Julio Galván, representative of the Mexican National Industry of Auto Parts (INA), commented that changes in auto production lines in Mexico and the United States will likely reduce the typical assembly margin.
From January to May, over 1.6 million units have been produced, representing a 0.5% decrease compared to the same period in 2024. AMIA stated that this figure is the third-best historical result for a cumulative period, only surpassed by 2019 and 2024.
Automotive exports during the first five months of 2025 exceeded 1.3 million units, despite a 6.3% decrease compared to the same period in 2024. This performance positions the January-May 2025 period as the fourth-best annual start for Mexican automotive exports.
Key Questions and Answers
- Q: What caused the decline in Mexican auto production and exports? A: The decrease was primarily due to tariffs and trade tensions with the United States.
- Q: Which brands were most affected by the tariffs? A: Mazda, General Motors, and Volkswagen experienced significant reductions in shipments.
- Q: Which brands saw growth despite the tariffs? A: Toyota and Honda reported substantial growth in May.
- Q: How does the current production volume compare to previous years? A: Although there was a 2% decrease compared to May 2024, it still ranks as the second-highest May production since 2001.
- Q: What is the outlook for Mexican auto exports in 2025? A: Despite a 6.3% decrease compared to the same period in 2024, the January-May 2025 export volume is the fourth-best annual start for Mexican automotive exports.
