Decline in Local Production and Rise of Asian Brands
Over the past decade, the three US automakers (General Motors, Ford, and Stellantis) have not only lost market share in the Mexican market with the arrival of new Asian brands but have also reduced their local car commercialization by 10 to 40 percentage points, according to Urban Science Latin America.
Asian Brands Gain Ground
In contrast, Asian brands (Toyota, KIA, and Mazda) have successfully increased their presence in the Mexican market by establishing manufacturing plants, thereby consolidating their sales of cars made in Mexico.
US Automakers Shift Focus
Despite having production facilities in Mexico and expanding their investments to grow assembly, these US automakers have lost sales of locally-made cars and prioritized the marketing of vehicles from other destinations, such as China (General Motors), the United States (Ford), and Brazil (Stellantis).
Shifting Strategies: A Closer Look
According to Urban Science’s analysis of Chinese car sales in Mexico, General Motors marketed 53% of its vehicles as locally-made in Mexico during the period from January to June 2016. However, by the first half of 2025, this strategy changed, with only 11% of their vehicles being marketed as made in Mexico.
A decade ago, Chinese cars were not part of General Motors’ marketing platform in Mexico. By the first half of 2025, they marketed 74% of their vehicles as manufactured in China, said Eric Ramírez, General Manager of Urban Science Latin America.
Simultaneously, the increased penetration of Asian brands in Mexico led General Motors to lose 5.3 percentage points of sales in the Mexican market, dropping from 18.6% of total sales in 2016 to 13.3%.
In Ford’s case, Chinese cars did not feature in their Mexican sales during 2016. However, by the first half of 2025, they marketed 23% of their vehicles as originating from China. Meanwhile, the percentage of Mexican-made cars dropped from 20% to 11% over a decade, reducing their market presence from 6% to 3.6%.
Stellantis experienced a similar trend, with Mexican-made cars falling from 24% to 21% over ten years. In 2016, there was no presence of Chinese-made units; currently, they market 10% of their total sales as originating from China.
Are Asian Brands the Preferred Choice of Mexicans?
The arrival of Toyota, KIA, and Mazda in Mexico marked a new chapter in the automotive industry, offering fresh options like Toyota’s hybrid vehicles that have helped them gain market presence, market share, and even increase the sale of cars produced in their Mexican plants.
Eric Ramírez noted that KIA has stood out as a brand that not only exported but also produced for the domestic market, rising from 3% of locally-made cars in 2016 to 65% today. KIA is now the third-largest Asian brand producing and selling cars made in Mexico, although they have also increased their Chinese-made car sales.
Despite Local Presence, US Automakers Prioritize Other Origins
Although all three automakers have production facilities in Mexico, they lost sales of locally-made cars and prioritized the marketing of vehicles from other destinations like China.
Key Questions and Answers
- What has changed in the Mexican automotive market over the past decade? US automakers (General Motors, Ford, and Stellantis) have lost market share and reduced their local car commercialization by 10 to 40 percentage points, while Asian brands (Toyota, KIA, and Mazda) have increased their presence.
- How has General Motors’ strategy evolved in Mexico? General Motors shifted from marketing 53% of its vehicles as locally-made in Mexico in 2016 to only 11% by the first half of 2025, prioritizing Chinese-made cars.
- What impact has this shift had on other US automakers? Ford’s market presence in Mexico dropped from 6% to 3.6%, losing 2.4 percentage points, as they prioritized Chinese-made cars. Stellantis also experienced a similar trend, with Mexican-made cars falling from 24% to 21% over ten years.
- Which Asian brands have gained prominence in Mexico? Toyota, KIA, and Mazda have successfully increased their market presence in Mexico by establishing manufacturing plants and consolidating sales of cars made in the country.
- What makes KIA stand out among Asian brands in Mexico? KIA has not only exported but also produced for the domestic market, rising from 3% of locally-made cars in 2016 to 65% today, making it the third-largest Asian brand producing and selling cars made in Mexico.
