Mexico’s Auto Production and Exports Fall to Steepest Decline Since Pandemic

Mexico automotive production and exports fall to lowest level since pandemic, Digi Mart USA News (Mexico): Mexico manufactured 302,803 light vehicles domestically in October 2026, a decrease of 17.7% compared with the same month a year earlier. The country exported 258,137 units, a decline of 17.9%, which the source attributes to the 25% tariff that automakers face when selling into the United States.

Both percentages represent a drop not seen since the pandemic in 2021, when production fell 19.9%, according to the National Institute of Statistics and Geography (INEGI).

INEGI’s Light Vehicle Automotive Industry Administrative Registry (RAIAVL) shows that the decline in manufacturing and exports reflects conditions in the United States, which reduced its purchases from Mexico by 17.6%. The automotive industry shipped 202,724 units to the United States in October, compared with 245,912 units in the same month of 2025.

General Motors was the most affected brand, with its total exports to the world falling 47.2%, although more than 90% of those exports are destined for the United States. The source notes that the U.S.

automaker was affected after the United States ended its electric vehicle incentive policy, which forced a production slowdown in Mexico.

The source also cites the effect of Mercedes-Benz, which stopped manufacturing vehicles in Mexico by canceling operations. Other brands with declining exports include Mazda at 32.5%, Ford at 21.4%, BMW at 23%, Stellantis (Chrysler) at 12.9%, and Volkswagen at 11.9%.

From January through October, the industry produced 3,254,062 vehicles, a 3.9% decrease from the same period of 2025. Light trucks, including SUVs and pickups, accounted for 78.7% of production, or 2,560,201 units, while automobiles, including compact and subcompact models, made up the remaining 21.3%, or 693,861 units.

Exports for the January-October period totaled 2,786,760 vehicles, a 3.3% decline compared with the same period of 2025, according to INEGI, based on data from AMDA and AMIA.