Policy Decree Aims to Boost Local Auto Industry and Reduce Imports
With the rise in Chinese car sales within the Mexican market, the Mexican government plans to decrease new vehicle imports and increase domestic production. The goal is to support the local industry, reduce reliance on foreign markets—especially China and India—and strengthen the Mexican automotive sector.
Key Players and Their Roles
President Claudia Sheinbaum will meet with the Mexican automotive industry this week to review and adjust the Automotive Decree, aiming to promote more affordable domestically-produced cars and decrease imports from China, India, or other countries.
Marcelo Ebrard, Secretary of Economy, stated: “Our objective is to increase national content. We need to protect the established industry and reduce importing vehicles from abroad due to changing rules and our primary partner altering those rules.”
Part of a Broader Economic Plan
This initiative is part of the Mexico Plan, which seeks to foster a more equitable and self-sufficient economy.
Jimena Escobar Juárez, head of the Productive Development Unit at the Secretariat of Economy, met with Global Companies over the weekend. Representatives from Stellantis, General Motors, Nissan, and other brands were present. She informed them that efforts will be made to increase domestic production and attract more investment.
Current Market Trends
According to the Mexican Association of Automobile Dealers (AMDA), 63% of new car sales in Mexico during the first quarter of 2025 were imports, primarily from countries like China, the United States, Brazil, Japan, India, and Thailand.
Policy Details
Escobar Juárez explained to automakers that the focus will be on updating the current Automotive Decree in favor of domestic production, aligning with the Mexico Plan.
Alongside this, public policies will be implemented to encourage new investments and ensure the operational continuity of existing plants in Mexico.
She acknowledged the high demand for Asian-origin vehicles, stating that this is not an issue. However, the aim is to level the playing field for local automakers.
Reassurance to Established Industry
During a meeting with COPARMEX, Marcelo Ebrard guaranteed that upcoming changes will not negatively impact the established Mexican automotive industry.
Key Questions and Answers
- What is the main objective of this policy change? The Mexican government aims to boost domestic car production, reduce imports—especially from China and India—and strengthen the local automotive industry.
- Who are the key players involved in this initiative? President Claudia Sheinbaum, Marcelo Ebrard (Secretary of Economy), Jimena Escobar Juárez (head of the Productive Development Unit at the Secretariat of Economy), and representatives from major automotive companies like Stellantis, General Motors, and Nissan.
- What percentage of new car sales in Mexico were imports during the first quarter of 2025? According to AMDA, 63% of new car sales were imports.
- How will this policy affect the established automotive industry in Mexico? Marcelo Ebrard has assured that the changes will not negatively impact the established industry.
