Mexico’s auto exports fell 12% in September as tariffs and trade uncertainty weighed on production, while domestic sales rose 8%.
On the Dash:
- Mexico’s auto exports fell 12% in September, the steepest decline since December 2025.
- Monthly vehicle production dropped 15%, while domestic sales increased 8%.
- U.S. tariffs and uncertainty around USMCA rules are pressuring automakers’ production and export decisions.
According to recent INEGI data, Mexico’s light vehicle exports fell 12% year-over-year in September to 277,369 units, the steepest decline since December 2025, while light vehicle production dropped 15%. However, domestic vehicle sales rose 8% during the same month.
Analysts attribute the export drop in part to U.S. tariff policies, as the U.S. is Mexico’s largest auto export market and Mexican vehicles currently face a 25% tariff there. Under current trade conditions, Mexican officials estimate that meeting North American content requirements could reduce the effective tariff burden to 10% to 12%. Meanwhile, U.S. and Mexican officials are reviewing the USMCA trade agreement, and analysts say the changing trade environment is affecting production and export decisions.
Automaker export performance varies
General Motors, Ford and Nissan all reported significant export declines in September, and GM had previously announced a $4 billion investment plan to shift some production from Mexico to U.S. facilities. Meanwhile, Mercedes-Benz produced and exported no vehicles in September due to its joint plant with Nissan that closed in May, marking the first month without production or exports since the company began shipping vehicles overseas from Mexico eight years ago.
Conversely, Kia, BMW, and Mazda increased exports in September, helping offset declines from other manufacturers, and Mazda more than doubled its monthly exports. These differences show how different production strategies and tariff exposures affect Mexico’s export results.
According to AMIA, the country’s main auto industry chamber, Mexico remains the largest foreign supplier of light vehicles to the U.S. and accounts for 16% of all U.S. light vehicles. Meanwhile, the U.S. light vehicle market has contracted 2% so far this year, and Mexican auto exports to the U.S. fell 5% in the first nine months of 2026.
Canada provides some relief
Canada, Mexico’s second-largest export market, increased its purchases of Mexican vehicles by more than 9% in the first nine months, which gives Mexico some diversification amid uncertainty over U.S. demand and trade policies. Even so, analysts still view the Mexico-U.S. trade relationship as the primary factor shaping the industry’s outlook, and automakers and suppliers will closely monitor trade negotiations as they assess future production and investment decisions.
Source: www.cbtnews.com
