Background on the Situation
In April 2025, Mexican exports of light vehicles fell by 10.9% to 256,953 units, marking the largest monthly drop since 2016, excluding the atypical year of 2020 due to the COVID-19 pandemic. Over the first four months of 2025, exports targeted at foreign markets decreased by 7.3%, while production increased by 0.9%. This decline coincides with the implementation of a 25% generalized tariff on automotive imports in the United States, which affects non-US content in each Mexican unit. The tariff was enforced on April 3, as part of an aggressive arancel policy initiated by the Trump administration, citing strategic and national security reasons for protecting the automotive sector from imports.
Impact on Major Automakers
Several prominent automakers experienced production drops, including Stellantis (-46.7%), BMW (-27.1%), Volkswagen (-18.8%), JAC (-14.9%), General Motors (-11.6%), Nissan (-10%), Audi (-8.7%), KIA (-3.9%), Mazda (-1.9%), and Mercedes Benz (-0.9%). However, Ford, Toyota, and Honda saw growth, with increases of 0.3%, 27%, and 27.8%, respectively.
Resilience Amidst Challenges
Despite the production decline in April, Mexico’s automotive industry remains robust. The Association of the Mexican Automotive Industry (AMIA) highlighted that April 2025 still ranks as the second-highest production month for April, just behind 2024. Honda surprised with increased production of the HR-V SUV in Celaya, Guanajuato, and initiated assembly of the Acura luxury SUV, ADX, for export to the United States, where demand is high.
Toyota has also been a key player in sustaining the industry, with a 27% increase in assembly compared to April 2024. The Japanese automaker manufactures the Tacoma pickup, both gasoline and hybrid versions, in Guanajuato and Baja California for export to the U.S. In the first four months of 2025, Toyota’s production has surged by 82.9%, rising from 57,790 units to 105,720 vehicles. Overall, nearly 1.3 million units have been produced since the start of the year, marking a 0.9% growth compared to the same period in 2024—the second-best historical performance for a first quarter.
Mexico’s Position in the Global Automotive Market
By the end of 2024, Mexico became the fifth-largest light vehicle producer globally, assembling 4 million units. However, its production capacity remains higher, and advantages from the USMCA could help it recover in upcoming months. Despite international trade uncertainty, Mexican exports dropped by 7.3% during the first four months of 2025.
Key Questions and Answers
- What is the main issue affecting Mexican light vehicle exports? The primary concern is a 25% tariff imposed by the U.S. on automotive imports, impacting non-US content in Mexican vehicles.
- Which automakers experienced production declines? Stellantis, BMW, Volkswagen, JAC, General Motors, Nissan, Audi, KIA, Mazda, and Mercedes Benz all reported production drops.
- Which automakers saw growth in production? Ford, Toyota, and Honda experienced production increases of 0.3%, 27%, and 27.8%, respectively.
- How has Mexico’s automotive industry fared despite challenges? The industry remains robust, with Honda increasing HR-V SUV production and Toyota’s Tacoma assembly surging by 82.9% in the first four months of 2025.
- What is Mexico’s position in the global automotive market? By the end of 2024, Mexico was the fifth-largest light vehicle producer globally, with potential for further growth due to advantages from the USMCA.
