Latest News Stream - Car Production

Mexico’s light vehicle production fell 17.7% year-on-year to 302,803 units in October 2026, down from 367,928 a year earlier, marking the steepest monthly decline since 2021. The contraction was attributed largely to weaker US demand, alongside the impact of tariffs on Mexican-made vehicles entering the US and the removal of incentives for electric cars. Several major automakers reported significant drops in output, led by General Motors, whose production fell 45.5% compared with October 2025. Stellantis recorded a 37.4% decline, while BMW Group and Nissan saw decreases of 17.4% and 16.4%, respectively. Kia’s production was down a more modest 2.8%. The weakness also affected cumulative performance, with Mexico assembling 3.25 million vehicles between January and October 2026, a 3.9% decrease from the 3.39 million units produced over the same period last year.

Car production in the UK surged by 38.6% year-on-year to 70,831 units in September 2026, marking the strongest September output since 2023 and accelerating from a 6.1% rise in August, as manufacturers recover from a cyberattack-hit comparison a year earlier. Total vehicle production rose 36.3% to 74,031 units, the strongest growth since August 2022. The EU remained the largest export destination, accounting for 57.5% of car shipments, with exports up 12.7%, while shipments to the US jumped 234.8% and those to China soared 357.7%, albeit from a low base. However, total car and commercial vehicle production fell 3% year-on-year to 564,537 units in the first nine months. The SMMT warned that the EU’s proposed “Made in Europe” rules and tougher post-Brexit rules of origin could threaten the sector, while UK’s electric-vehicle sales mandate is adding pressure on manufacturers. UK light vehicle production is forecast to fall 2.3% to 731,000 units in 2026 before recovering to 752,000 in 2027.

Brazil’s vehicle production fell 1.1% month-over-month to 268,300 units in September 2026, following a 6.8% increase in August. Passenger car production fell 2.8% to 209,000 units, while light commercial vehicle output jumped 8.6% to 46,200 units. Truck production declined 1.3% to 11,600 units, while bus output slumped 23.2% to 1,400 units. Despite the monthly decline, production reached its highest September level since 2014, rising 10.2% year-on-year. In the first nine months of the year, production rose 8.7% from the same period in 2025 to nearly 2.2 million units. However, of the 173,000 additional vehicles produced compared with last year, only 50,000 were manufactured entirely in Brazil, while the remainder were SKD and CKD models.

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%).

Car production in the United Kingdom climbed by 6.1% year-on-year to 39,328 units in August 2026, marking the strongest growth since December 2025 and rebounding from a 10.6% fall in July. Total vehicle production rose 5.7% to 40,872 units, as domestic demand picked up, while August is typically a low-output and volatile month due to scheduled plant shutdowns. Car exports to Australia, Japan and the US recorded the biggest gains among the top 10 markets, but shipments to the European Union fell 7.4% and those to China dropped 15%. The EU remained the UK’s largest overseas market, accounting for 54.1% of car exports. The SMMT said investments of more than £1 billion from McLaren, Nissan and Bentley support the sector’s long-term prospects. However, it warned that the EU’s proposed “Made in Europe” provisions pose an existential threat to UK production, given the deep integration between British and EU auto industries.

Brazil’s vehicle production increased 6.8% month-on-month to 271.2 thousand units in August 2026, accelerating from a 3.1% increase in July and reaching the highest monthly output since October 2019. Light vehicle production reached 257.5 thousand units, with passenger cars up 9.5% to 214.9 thousand units and light commercial vehicles down 2% to 42.6 thousand units. Heavy vehicle production totaled 13.6 thousand units, with trucks down 2.8% to 11.8 thousand units and buses declining 13.1% to 1.86 thousand units. Production rose 9.4% year-on-year. In the first eight months of 2026, output totaled about 1.9 million units, up 8.5% year-on-year. Despite the strong growth, two-thirds of the additional 150,000 vehicles produced this year were SKD and CKD models, imported in parts and assembled in Brazil.

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%.

Brazil's vehicle production increased 3.1% month-over-month to 253.9 thousand units in July 2026, rebounding from a 3.0% decline in June and reaching the highest level since March. Light vehicle output rose 2.9%, driven by a 4.3% increase in passenger car production, which more than offset a 2.9% decline in light commercial vehicles. Truck production climbed 11.2%, supported by gains across all categories, while bus output fell 8.0%. Growth in the first seven months of the year rose to 8.3%. According to Anfavea, Brazil ranked as the world's second-fastest growing vehicle producer, behind India (14.5%). Despite weaker exports and rising imports, the domestic automotive industry remained resilient, supported by solid local demand. Anfavea President Igor Calvet stated the sector's performance was significant despite external trade challenges and import volumes exceeding historical averages. On an annual basis, output rose 5.9%.

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%).

UK car production dropped 1.2% year-on-year to 68,200 units in June 2026, reversing a 3.2% rise in May. The decline came even as domestic production plunged 17.5% yoy, though car exports rose 4.5%. For H1 of the year, car production fell 7.5% yoy to 385,979 units amid trade uncertainty, with exports dropping 5.6% to 294,222 units. Meanwhile, domestic production shed 13.2% to 91,757 units. "Clearly, vehicle production is still under severe pressure, but the last quarter suggests at least a sign of stabilization," said SMMT CEO Mike Hawes. Exports accounted for 76.2% of all vehicles built, underscoring the sector's dependence on international trade. Among key export markets, the United States was the second-largest market, accounting for 15.8% of exports, despite volumes dropping 4.6% to 45,162 units. Exports to China, the third-largest market, plunged 44.7% to 12,323 units. Meanwhile, exports to the EU, the largest market, rose 3.4% to 166,801 units, accounting for 58.3% of exports.

Brazil's vehicle production fell 3.0% month-over-month to 246,000 units in June 2026 after rising 6.3% in May. The decline reflected lower light vehicle inventories at manufacturers following the delivery of around 79,000 vehicles with government-backed discounts to dealerships under a new Provisional Measure. Light vehicle production totaled 189,200 units, down 17% from the previous month. Passenger car output fell 6.5%, while bus production dropped 20.8%. In contrast, production of light commercial vehicles rose 15.1% and truck output increased 3.9%.

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%).

UK car production rose 3.2% year-on-year to 49,249 units in May 2026, reversing four consecutive monthly declines and marking the first increase this year. The recovery was driven by stronger overseas demand, with car exports rising 3.9% to 38,897 units and accounting for 79% of total output. Among key export markets, the United States recorded the largest increase, surging 83.1% to 7,733 units, supported by the implementation of the US-UK trade agreement, while exports to the EU, the largest market, fell 5.2% to 20,057 units. Exports to China also declined 14.3% to 2,794 units. Domestic demand remained subdued, with UK-bound car production edging up just 0.7% to 10,352 units. Despite May’s improvement, UK car output in the first five months of 2026 remained 4.1% lower than a year earlier, as manufacturers continued to face weak domestic demand, elevated costs, and ongoing trade uncertainties.

Brazil's vehicle production rose 6.3% month-on-month to 253,600 units in May 2026, marking the strongest result for the month since 2019, before the pandemic. The increase was driven by a 21.5% jump in passenger car sales, supported in part by the strong performance of entry-level models under the Sustainable Car program. Light commercial vehicles, including pickups, vans, and cargo vans, also posted solid growth of 7.7%. In contrast, truck production fell 15.1%, while bus output declined 16.3%. Both segments are expected to recover as easier financing conditions under the Move Brasil 2 program become available.

UK car production dropped 0.7% year-on-year to a four-month low of 56,135 units in April 2026, following a 0.8% decline in the previous month, reflecting broader model changeovers amid challenges in several key global markets. Meanwhile, car exports shrank 8.2%, although the EU remained the largest destination, accounting for 53.2% of exports, with shipments to the bloc rising 6.9% to 23,103 units. Exports also grew to the US, rising 6.8% to 7,558 units, but plunged to China, slumping 44.4% to 2,081 units. However, exports continued to drive production, accounting for 76.4% of all vehicle output in the month. A 1.1% rise in cars produced for global markets offset the decline in shipments, resulting in an overall 0.8% increase in outbound trade. Meanwhile, domestic car output for the UK fell 6.4% to 12,700 units. In the first four months of the year, car output dropped 5.4% to 257,024 units.

UK car production fell by 0.8% year-on-year to 69,755 units in March 2026, following a 10.7% drop in the previous month, as temporary parts supply disruption at a large plant, weak exports to Asian and US markets, and model changeovers weighed on output. Car exports fell 4.3% to 49,339 units, but overseas shipments still accounted for the bulk of production. The EU remained the largest destination, taking 62.6% or 30,899 units of exports, with volumes to the bloc rising for a fourth consecutive month by 4.8%, partly offsetting sharp declines in production for the US (-24.1%), China (-47.9%) and Japan (-25.3%), which together accounted for 18.6% of all shipments. Meanwhile, domestic demand strengthened, with car output for the UK up 8.7% to 20,416 units. In the first quarter, car output fell 6.7% to 200,889, mainly reflecting last year’s closure of a major UK plant.

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.