Finished vehicle exports from Mexico have dropped by 12% due to the US tariffs, according to the latest report by Mexico’s National Institute of Statistics and Geography (INEGI).
In September, 277,369 finished vehicles were exported from Mexico, down 11.85% year-on-year, representing the sharpest drop since December 2025, while vehicle production also decreased by 15% to 301,803.
A primary reason for the drop in exports is due to US president Donald Trump implementing a 25% tariff on vehicle imports from Mexico, with US-sourced parts helping to bring the tariff down to 10-12%.
However, the drop in exports was partially offset by domestic sales, which increased 8% year-on-year.
Mexico’s domestic sales rise
While domestic sales rose moderately, most of the major carmakers with North American facilities experienced a flat rate of sales. GM, Nissan and VW Group had minuscule increases in domestic sales from January to September 2026 compared to the same time period in 2025. GM’s domestic sales rose from 142,698 to 146,650 (up 2.8%), Nissan’s from 196,440 to 197,080 (up 0.3%), and VW’s from 97,970 to 100,329 (up 2.4%).
In comparison, the Chinese OEMs present in Mexico experienced significant increases year-on-year. Geely saw its domestic sales almost triple, from 12,768 last year to 35,912 this year, up 181.3%. Changan increased its sales by 23.9%, from 13,067 to 16,184. And while it has a much smaller percentage of the market, Chery-owned Jetour Soueast increased sales almost fourfold, from 1,196 to 4,727.
Stellantis increases Mexico production and exports
In terms of production from January to September this year, Mercedes and Nissan produced less than 2025, while Stellantis and VW increased their output. Merecedes-Benz production dropped by almost half (49.3%), from 43,482 units produced last year to 22,060, while Nissan dropped 25.2% from 514,813 to 385,038. Meanwhile, Stellantis increased production by 18.9%, rising from 290,685 units to 345,522, and VW increased 14.6% from 250,124 to 286,668.
A similar story was seen in exports from Mexico, with Mercedes, Nissan and Mazda all decreasing exports, while Stellantis increased its exports. Mercedes-Benz exports dropped 41.6% from 40,112 to 23,437, Nissan’s dropped 29.5% from 338,428 to 238,470, and Mazda’s exports dropped 12.4% from 75,371 to 66,059. Stellantis increased exports by 30.2%, from 243,120 to 316,533 in the first three quarters of the year.
A potential reason for Stellantis being an outlier is its model launches. Stellantis began production of the new Jeep Cherokee in Toluca in December last year, with US dealer deliveries accelerating from March 2026.
The OEM also restarted production of the Ram 1500 in Saltillo, with the first vehicle leaving the plant in February, although this model was made for the Mexican market.
For Mercedes-Benz, capacity reduction and changes in its product portfolio help explain some of the decline in production and exports. In February, Mercedes confirmed that assembly at the COMPAS plant in Aguascalientes would end during 2026, presenting this within plans to make manufacturing more efficient and reduce global capacity to around 2.2 million vehicles by 2028. The carmaker did not produce or export any vehicles in September, which is the first time that has happened in eight years.
Nissan stated in the past that tariffs would mean a reduction in Mexico production and exports. In April, Nissan Mexico’s president, Rodrigo Centeno, said tariffs had forced the company to reduce exports to the US, warning that the falling volume could require the removal of at least one production shift in Aguascalientes.
But Mazda has been the clearest in its correlation between the implementation of US tariffs and a reduction in exports. Back in November, Mazda said it had deliberately reduced production and shipments of Mexican-built models because it anticipated weaker demand following tariff-related price increases, specifically identifying reduced CX-30 volumes as a response to tariffs. In May this year, within its financial results, the carmaker said it continues to carefully manage US sales volumes of the Mexican-built CX-30 and Mazda3 because of US–Mexico tariffs.
Daniel Harrison, senior automotive analyst, Automotive Logistics said: “The failure to renew the USMCA free trade agreement and imposition of punitive tariffs is already having real tangible impacts upon production decisions, investments, and ultimately component and finished vehicles flows for LSPs”
He added: “The impact upon individual OEMs varies according to where they are in their model product cycles, differing production footprints, regional sales, and the ability (or inability) to be flexible and shift production to other regions, to mitigate the impact of the protectionist tariffs.”
Mexico cuts automotive component tariffs as US trade negotiations stall
Mexico has introduced a five-year exemption from import tariffs on certain automotive components, as the government seeks to support domestic manufacturing and investment amid continued uncertainty over US trade policy.
The measure, which came into effect on 14 October, removes the existing 10% import duty on qualifying vehicle assembly parts, including components used in semi-knocked-down (SKD) and completely knocked-down (CKD) assembly operations.
Mexico's economy ministry subsequently clarified that the exemption would be restricted to established vehicle manufacturers with production facilities in the country. Eleven carmakers are understood to qualify, potentially including General Motors, Ford, Nissan, Stellantis, Toyota and Volkswagen.
The move comes as negotiations between Mexico and the US over automotive tariffs encounter fresh difficulties. According to the *Wall Street Journal*, disagreements over proposed reductions in US tariffs on vehicles, steel and aluminium have slowed progress towards an agreement.
Mexican economy secretary Marcelo Ebrard nevertheless remains hopeful that tariff relief can be secured before the end of the year.
The developments highlight the challenges facing Mexico's automotive supply chain. Although the reduction in component import duties could ease manufacturing costs for qualifying OEMs, uncertainty over US tariffs continues to complicate production planning, investment decisions and cross-border vehicle flows.
The importance of the US market remains considerable. Of the 2.53m light vehicles exported from Mexico during the first nine months of 2026, approximately 1.93m were destined for the US, representing 76.4% of total shipments.
Automotive Logistics’ take
The figures underline the increasingly uneven impact of US tariffs on Mexico's automotive industry. While some manufacturers are scaling back production and exports in response to higher costs and weaker demand, others are increasing output through new model launches and changes to their manufacturing footprints.
For automotive logistics providers, these diverging strategies are likely to complicate capacity planning and finished vehicle distribution, particularly as carmakers reassess production volumes, export destinations and their reliance on cross-border supply chains.
