Mexico Car Output Falls for 2nd Month

Mexico's car production fell 2.2% year-on-year to 302,673 units in July 2026, following a 1.9% decline in June. The result reflected continued uncertainty in the auto sector as changing US trade policies clouded manufacturers' production plans. US President Trump in his second term imposed a series of tariffs on multiple countries, including Mexico. While the Trump administration decided not to renew the USMCA, the agreement will remain in force for another decade unless a member withdraws, with annual reviews that could lead to significant changes. The US and Mexico also continue bilateral trade negotiations. Output declined sharply at Mercedes (-98%), Honda (-26%), Stellantis (-20.3%), and Nissan (-18.9%).

Mexico's car production fell 1.9% year-on-year to 354,221 units in June 2026, easing from a 3.7% decline in May. The result reflected continued uncertainty in the auto sector as changing US trade policies clouded manufacturers' production plans. US President Trump in his second term imposed a series of tariffs on multiple countries, including Mexico. While the Trump administration decided not to renew the USMCA, the agreement will remain in force for another decade unless a member withdraws, with annual reviews that could lead to significant changes. The US and Mexico also continue bilateral trade negotiations. Output declined sharply at Mercedes (-97%), Audi (-52.2%), Nissan (-18.6%), Volkswagen (-7.6%), and Ford (-7.3%).

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).