Auto Exports Drag Mexico Output as USMCA Review Nears

This week in automotive news, Mexico’s auto output dipped in 2025 as light-vehicle production slipped 0.9% to 3.95 million units and exports fell 2.7%, reflecting weaker demand and tariff uncertainty. The country also enters the USMCA review period facing unresolved Section 232 tariffs on steel, aluminum, and autos.

By year-end, Mazda and Kia posted record results in Mexico, with Mazda sales rising 7.2% to 107,004 units and Kia growing 6.5% to 111,172 vehicles, both outperforming the broader market’s 1.3% growth.

EV adoption remains constrained by unclear maintenance cost structures, as expenses vary by usage rather than fixed schedules. Meanwhile, Stellantis announced it will halt US production of Jeep and Chrysler plug-in hybrids after the 2025 model year, signaling a shift in its North American electrification strategy.

More news below:

Mexico Auto Output Dips in 2025 as Exports Fall on Tariff Risks

Mexico’s light-vehicle industry ended 2025 below the four-million-unit production threshold, amid softer export demand and continued uncertainty surrounding US tariffs. According to the Administrative Registry of the Light Vehicle Automotive Industry (RAIAVL) compiled by INEGI, total production reached 3,953,494 units, a 0.9% decline from 2024. Export volumes fell 2.7% to 3,385,785 units.

Stellantis to Halt US PHEV Output for Jeep and Chrysler

Stellantis will end production of Jeep and Chrysler plug-in hybrid electric vehicles (PHEVs) for the US market beginning with the 2026 model year. The decision concludes production of the Jeep Wrangler 4xe, Jeep Grand Cherokee 4xe and Chrysler Pacifica PHEV after the 2025 model year and reflects a recalibration of the company’s electrification strategy in North America.

Automotive Industry 2026: Why Execution Will Define the Winners

“In 2026, the Mexican automotive industry finds itself in a position many countries would envy. The fundamentals are strong: geographic proximity to the United States, deep integration into North American supply chains, a mature manufacturing ecosystem, and decades of accumulated know-how across OEMs, Tier 1s, and Tier 2 suppliers. Nearshoring has reinforced Mexico’s relevance, not created it. Yet, from my perspective working closely with plants across automotive, aerospace, and industrial manufacturing, the most important question for 2026 is no longer why Mexico will continue to attract investment, but how well that investment will be executed on the shop floor.” According to Miguel Saldamando CEO of CEAT.

Mazda Posts Record 107,004 Vehicle Sales in Mexico in 2025

Mazda México closed 2025 hitting record sales with 107,004 vehicles, a 7.2% increase compared with 2024, outperforming an automotive market that grew 1.3% overall. The result marked the best year in the company’s history in the country and gave Mazda a 7.1% market share, placing it sixth among light-vehicle brands in Mexico.

Kia Mexico Posts Record 111,172 Vehicle Sales

Kia Mexico closed 2025 with record vehicle sales, reporting 111,172 units sold from January to December. This 6.5% increase, compared with 2024, was driven mainly by models manufactured at its Nuevo Leon plant. The result marked the strongest annual performance in the brand’s history in the Mexican market and outpaced overall industry growth, which stood at 1.3% for the year.

Mexico Faces Section 232 Tariffs as Exports Fall 1.6% Pre-USMCA

Mexico enters the year of the USMCA review facing unresolved US tariffs on steel, aluminum, autos, and heavy trucks that continue to pressure trade and investment decisions. The duties, imposed under Section 232 of US law during the Trump administration, remain a central concern for Mexican authorities and industry groups as they prepare for talks with Washington.

Maintenance Uncertainty Limits EV Adoption in Mexico

The growth of EVs in Mexico is changing how consumers and fleets assess operating costs, particularly maintenance. Unlike internal combustion vehicles, EV maintenance does not follow a uniform schedule or fixed expense pattern, according to industry representatives and manufacturer data. Instead, costs are concentrated in specific services over the vehicle’s life cycle and depend largely on usage.

PPG to Expand Resin Production in Mexico

PPG Industries will expand domestic production of low-emission resin at its Tepexpan plant in the State of Mexico. The investment targets one of PPG’s five manufacturing sites in the country and seeks to increase resin capacity to reduce reliance on imports from the United States, Asia, and Germany. The move comes amid rising tariffs on Asian inputs and structural gaps in Mexico’s petrochemical sector.