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Audi Launches Third-Generation Q5 From Puebla as 27.5% U.S. Tariff Pressures Spur Localization

Audi pursues higher regional content through supplier shifts, seeking short‑term relief in talks with both governments.

Overview

  • Since April, Q5 exports from Puebla to the U.S. have faced a 27.5% duty, combining a 25% penalty for missing T‑MEC regional content with a 2.5% most‑favored‑nation tariff.
  • Audi reports the new Q5 at roughly 63% regional value content, up from about 62% in the prior generation but still below the duty‑free threshold.
  • INEGI data for January–August show production at 95,200 units (-2.4% year over year) and exports at 89,976 (-3.1%), reflecting the tariff’s strain on volumes.
  • The Puebla plant remains the global build site for Q5 outside China and India, reinforcing its role as Audi’s hub for the model.
  • The Mexico lineup includes a 272 hp 2.0 TFSI and a 367 hp SQ5 V6, Sportback variants, the new Digital Stage cockpit, prices from 1,199,900 to 1,709,900 pesos, with a plug‑in hybrid confirmed for the market; Audi is also evaluating allocating a fully electric model to Puebla.