Record-Breaking Shipments Amidst Tariff Discounts for Mexico
In June, the Mexican automotive industry overcame the turbulence caused by tariff impositions in the United States, with export figures reaching a new high of 331,517 units, according to the National Institute of Statistics and Geography (Inegi).
Background on Tariffs and Their Impact
In early April, the U.S. implemented a 25% tariff on imported automotive vehicles and parts, citing national security concerns. However, the tariff only applied to non-U.S. content in vehicles from Mexico’s T-MEC partners (Mexico, the U.S., and Canada). By mid-May, Mexican Secretary of Economy Marcelo Ebrard announced that the average tariff on Mexican-exported vehicles had dropped to 15%, providing a significant advantage over competitors like Japan, South Korea, and Germany who face full tariffs.
Key Players and Their Performance
- General Motors: The leading manufacturer and exporter in Mexico, General Motors saw a remarkable 56.4% increase to 72,324 units.
- Nissan: The second-largest manufacturer and exporter increased its shipments by 27.1% to 53,289 vehicles.
- KIA, BMW, and Toyota: Other notable performers included KIA with a 20.7% increase, BMW with 15.5%, and Toyota with a 15% rise.
Semester Performance
Despite the tariff challenges, the overall six-month performance of the Mexican automotive industry was relatively limited. While assembled car production increased by 0.5%, reaching a record two million units, exports fell 2.8% to one million 666,184 vehicles.
U.S. Market Demand and Export Trends
The demand for Mexican-made vehicles in the U.S. grew in June, while other importers saw a decline. Mexico shipped one million 327,892 units to the U.S., accounting for 79.7% of its national exports. AMIA’s director, Odracir Barquera, noted that 19.8% of total U.S. car sales come from Mexico.
Green Vehicle Manufacturing on the Rise
The AMIA reported that the production of electric and hybrid vehicles in Mexico continues to grow, increasing by 71% in the first half of 2025 compared to the same period in the previous year. Major automakers produced 117,850 green vehicles, with General Motors leading the way with 49,464 electric SUV Equinox and Blazer models.
Key Questions and Answers
- What were the tariff changes implemented by the U.S.? The U.S. imposed a 25% tariff on imported automotive vehicles and parts in April 2025, but only applied it to non-U.S. content in vehicles from Mexico’s T-MEC partners.
- How did these tariffs affect Mexican automotive exports? Despite initial challenges, Mexican auto exports reached a record high in June 2025, with an average tariff of 15% on exported vehicles, giving Mexican producers a competitive edge.
- Which automakers performed well amidst tariff changes? General Motors, Nissan, KIA, BMW, and Toyota all saw significant increases in exports following the tariff adjustments.
- How has the production of green vehicles evolved in Mexico? The production of electric and hybrid vehicles in Mexico has grown by 71% in the first half of 2025, with major automakers like General Motors, Ford, Toyota, and Stellantis contributing to this growth.
