Mexico Car Production Drops Most in 6 Months

Car production in Mexico fell by 3.7% from the previous year to 342,926 units in May of 2026, the sharpest decline in six months. The result was aligned with recent instability in the sector as a series of tariffs and trade deals between Mexico and the US, the largest market for domestically produced autos, left manufacturers unsure on how to scale their capacity. Production was sharply lower or Ford (-13.6% to 36,346 units), Nissan (-23.6% to 46,573) and Audi (-14.5% to 11,968).

Mexico’s car production rose by 2.1% year-over-year to 329,878 units in April 2026, marking the second consecutive monthly increase. Among the major producers, output grew for Stellantis (+108.6% to 43,957), Volkswagen (+16.8% to 34,157), KIA (+8.7% to 25,280), BMW Group (+72.6% to 9,118) and Mercedes-Benz Group (+12.3% to 5,280).. On the other hand, lower production was mainly recorded for General Motors (-1.2% to 71,676), Nissan (-31.4% to 34,521), Ford Motor (-12.3% to 33,762), Mazda (-34.6% to 11,229) and Toyota (-3.9% to 26,187). Considering the four first months of 2026, auto output reached approximately 1.3 million units, up 0.9% from the same period in 2025.

Mexico’s car production increased 2.5% year-over-year in March 2026, reaching 343,520 units and reversing two months of declines. Strong gains were recorded by Volkswagen (+50.3% to 35,094 units), Stellantis (+7.4% to 38,637), Toyota (+1.7% to 27,730), KIA (+16.9% to 26,600), Honda (+24.7% to 16,264), and Audi (+70.5% to 13,635). However, production fell at General Motors (-4.7% to 76,443), Nissan (-16.6% to 42,022), and Ford Motor (-4.5% to 34,213). For the first quarter of 2026, total output grew just 0.5% to 969,294 units.