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Mexico Auto Production and Exports Fell in 2025 as U.S. Tariffs Weighed

Reliance on the U.S. market leaves the industry vulnerable to policy shifts.

Overview

  • Official Inegi data show light‑vehicle production down 0.9% to 3,953,000 units in 2025, with exports down 2.7% to 3,385,000.
  • The United States took 78.4% of Mexico’s exported vehicles and Canada received 11.1%, underscoring concentrated demand.
  • Domestic sales rose to 1,524,000 vehicles, about 20,000 more than in 2024, reflecting a modestly stronger local market.
  • Coverage links the declines to U.S. trade actions reported at 25%: vehicle import tariffs from April 3 and penalties on non‑compliant auto parts from May 3.
  • The auto sector’s weight in Mexico’s economy is substantial, contributing roughly 4% of GDP and 20.5% of manufacturing GDP.