Introduction
The ongoing global semiconductor shortage has significantly impacted the automotive industry, particularly in Mexico. In October 2025, technical stoppages at several automotive plants due to chip scarcity and reduced demand in the United States led to a 3.7% decrease in light vehicle production, causing a 5.5% contraction in exports to the world. The Instituto Nacional de Geografía y Estadística (Inegi) reported these findings.
Impact on Major Automakers
Honda and Volkswagen experienced production reductions in Mexico due to Nexperia’s chip supply issues. Honda’s assembly saw a 24% drop, while Volkswagen managed to maintain stability with a 0.1% growth in October. Mazda, facing US tariff challenges, suffered a 36.9% production decline due to decreased US exports to avoid tariffs under the Mexico-US-Canada Agreement (T-MEC).
Nissan’s Production Adjustments
Nissan is in the process of closing its CIVAC plant in Morelos and adjusting production at Aguascalientes, where the upcoming halt of Infiniti and QX50 model production in November also affects them. This resulted in a 17.4% assembly contraction for Nissan in October.
Resilient Automakers
Stellantis, BMW, and Mercedes-Benz have shown resilience amidst the chip shortage. Stellantis restarted RAM 1200 pickup production in Mexico, increasing assembly by 13.7% in October. BMW and Mercedes-Benz also experienced production growth of 13.7% and accelerated output, respectively, as they prepare for the closure of their joint venture with Nissan, COMPAS, in May 2026.
Toyota also benefited from the growing demand for the Tacoma pickup, increasing its assembly by 4.3%.
Annual Production Trends
From January to October 2025, the Mexican automotive industry produced over 3.3 million units, reflecting a slight 0.7% decrease compared to the same period in 2024. Despite this, it remains the second-best record for a comparable period.
AMIA’s Perspective
Stabilizing Export Performance
According to the Mexican Association of Automotive Industry (AMIA), export performance remains stable amid international trade tariff and uncertainty challenges.
In October, exports decreased by 5.5%, with 314,227 units shipped abroad. Mazda and Nissan experienced the most significant declines of 50% and 52.6%, respectively. General Motors and Ford increased their exports to the US by 5.2% and 2.4%, respectively, despite declining demand for electric vehicles due to the disappearance of tax incentives for green car sales.
Cumulatively, from January to October 2025, Mexico exported over 2.8 million units, marking a 1.5% decrease compared to the same period in 2024. Nonetheless, this places 2025 as the third-best historical record for that period.
Key Questions and Answers
- What caused the decrease in light vehicle production in Mexico during October 2025? The chip shortage and reduced demand in the United States led to technical stoppages at several automotive plants, causing a 3.7% decrease in production.
- Which automakers were most affected by the chip shortage? Honda, Mazda, and Nissan experienced significant production reductions due to the shortage. Volkswagen managed to maintain stability, while Stellantis, BMW, and Mercedes-Benz showed resilience and growth.
- What is the current status of Nissan’s production adjustments? Nissan is closing its CIVAC plant in Morelos and adjusting production at Aguascalientes, with the upcoming halt of Infiniti and QX50 model production in November also impacting them.
- How has the Mexican automotive industry performed in 2025 so far? Despite a slight 0.7% decrease compared to 2024, the industry produced over 3.3 million units from January to October 2025, placing it as the second-best record for a comparable period.
- What is AMIA’s perspective on the current automotive industry situation? AMIA reports stable export performance amid international trade tariff and uncertainty challenges, with General Motors and Ford increasing exports to the US despite declining demand for electric vehicles.
