Background on the Automotive Industry in Mexico
The automotive industry in Mexico has been a significant contributor to the country’s economy, with major international automakers establishing manufacturing plants and assembly operations. The industry’s growth has been fueled by factors such as proximity to the US market, skilled labor force, and favorable trade agreements.
The Setback: Tariffs Imposed by Trump
However, the industry faced a major setback due to tariffs imposed by former US President Donald Trump. These tariffs negatively affected Mexico’s automotive production and export capabilities, ultimately preventing the industry from meeting its ambitious goal.
Production and Export Figures
- Mexico produced 3,953,494 light vehicles from January to December 2025, marking a 0.9% decrease compared to the same period in 2024.
- Exports of vehicles fell by 2.7%, with Mexico shipping out 3,385,785 units during the same period.
Impact on Major Automakers
Several prominent automotive brands, including Volkswagen, Mazda, Honda, Stellantis, and General Motors, experienced production reductions ranging from 3.6% to 18.4%. These declines were primarily due to decreased export demand, with Mazda experiencing the most significant drop of 37.6%.
Nissan also faced challenges, with a 12.2% production decrease due to the closure of its Infiniti brand’s production and reduced demand in the US.
Mercedes Benz, Stellantis, BMW, and Audi also reported declines in shipments, with Mercedes Benz reducing its exports by 13.6% and Stellantis by 4.9%. Both BMW and Audi experienced drops in their exports as well.
AMIA’s Perspective
The Mexican Association of the Automotive Industry (AMIA) acknowledged that, despite falling short of the 4 million vehicle production goal, Mexico still achieved the second-best annual record since tracking began.
In terms of sales, the industry managed to sell over 1.5 million units by the end of 2025, reflecting a 1.3% increase compared to the same period in 2024. This performance secured 2025 as the third-best sales year on record, demonstrating stability in the domestic market.
Green Vehicle Sales
A positive note in the industry’s performance was the 18% growth in green vehicle sales compared to 2024. In 2025, Mexico commercialized 146,724 green vehicles, accounting for 9.6% of total sales.
- Out of the total vehicles sold in 2025, 112,117 were hybrid vehicles (76.4%),
- 20,923 were electric vehicles (14.3%), and
- 13,684 were plug-in hybrid vehicles (9.3%).
Key Questions and Answers
- What was Mexico’s production goal for light vehicles by 2025? The target was to produce 4 million light vehicles annually by 2025.
- Why did Mexico fail to meet its production goal? The primary reason was the implementation of tariffs by former US President Donald Trump, which negatively affected Mexico’s automotive production and export capabilities.
- Which major automakers were most affected by the tariffs? Brands like Volkswagen, Mazda, Honda, Stellantis, General Motors, and Nissan experienced production reductions due to decreased export demand.
- What was the growth rate in green vehicle sales for 2025 compared to 2024? Green vehicle sales increased by 18% in 2025 compared to the previous year.
