Mexico Auto Output Falls as US Tariff Risks Weigh

Mexico’s car production fell 15.1% year-on-year to 301,803 units in September 2026, following a 1.4% decline in August. The result reflected continued uncertainty in the auto sector as changing US trade policies clouded manufacturers’ production plans. The Trump administration imposed tariffs on multiple trading partners, including Mexico, while the US and Mexico continue bilateral trade negotiations. The USMCA remains in force following its 2026 joint review, despite unresolved issues that could lead to significant changes. Output fell sharply at Mercedes-Benz (-100%), Acura (-48.8%), General Motors (-27.1%) and Nissan (-26.3%).

Mexico's car production fell 1.4% year-on-year to 344,940 units in August 2026, following a 2.2% decline in July. 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 (-99%), Nissan (-26%) and Ford Motor (-25.7%), as well as Stellantis (-3.8%) and Toyota (-3%). Meanwhile, production rose sharply for BMW Group by 359%.

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%).