Production and export of cars in Mexico decreased

The Mexican automotive industry faces a decrease in vehicle production and export, attributed to internal and external factors impacting its performance.

This situation generates concern in a sector that represents nearly  4% of the national Gross Domestic Product (GDP) and more than 20% of the manufacturing GDP.

Decrease in production and export

During the first two months of 2025, vehicle production in Mexico registered a 3% drop

This in comparison to the same period of the previous year.

This downward trend was also reflected in exports, which decreased by 5% in the same period.

These figures contrast with the over 5% growth observed in 2024, a year in which the industry showed signs of recovery after the COVID-19 pandemic and supply shortages.

Impact of tariffs imposed by the United States

One of the factors contributing to this decline is the imposition of 25% tariffs by the United States on imports from Mexico and Canada.

This measure, implemented by President Donald Trump's administration, has caused trade tensions.

Additionally, it has affected the competitiveness of Mexican products in the U.S. market.

Response from the business and governmental sectors

In this scenario, Mexican entrepreneurs and authorities have intensified negotiations to counteract the effects of the tariffs.

Business leaders have requested incentives for private investment and greater security on the roads.

Meanwhile, the government of Claudia Sheinbaum is evaluating tariff and non-tariff measures in response to the actions of the United States.

Prospects and challenges for the automotive industry

The Mexican automotive industry faces the challenge of maintaining its momentum amid trade uncertainty and protectionist measures from its main trading partner.

Market diversification and improved competitiveness will be key to overcoming these challenges and ensuring the sector's stability in the future.

Despite these advances, Mexico faces challenges in adopting new technologies.

Such as the need for greater investments in infrastructure and workforce training in the use of advanced digital tools.

However, the country has a strategic location, trade agreements like the USMCA, can contribute to the production of vehicles with cutting-edge technology.