Kia Launches Domestic EV3 Production: Week in Automotive

In this week’s automotive news, USMCA review uncertainty and auto parts job losses cloud Mexico’s outlook despite record light vehicle sales through July 2026. China became Mexico's second-largest auto supplier, while Kia launched domestic EV3 production with a novel V2V service. Meanwhile, Isuzu introduced the D-MAX, and GM extended its SAIC joint venture through 2046.

Drivers, start your engines!-- This week in Automotive!

Kia Starts EV3 Production, World-First V2V Service in Mexico

South Korean automaker Kia has officially launched production of its EV3 crossover in Mexico, introducing the country’s first domestically manufactured 100% electric vehicle alongside a comprehensive charging ecosystem that features the company's first global vehicle-to-vehicle (V2V) mobile charging service.

China Becomes Mexico's No. 2 Auto Supplier in 1H26

China became Mexico's second-largest supplier of light vehicles in 1H26, accounting for 22% of all vehicles sold in the country as record demand and continued rise of Chinese automakers reshaped the automotive market. The shift comes despite tariffs of up to 50% on Chinese vehicle imports, while industry analysts warn that dealership expansion has outpaced retail demand, prompting an expected consolidation of sales networks even as manufacturers continue to strengthen their long-term presence in Mexico.

GM Extends China Partnership With SAIC Motor to 2046

General Motors has extended its joint venture with China's SAIC Motor for another 20 years, reinforcing China's role as a manufacturing and export hub despite geopolitical tensions, declining market share in the country, and the automaker's broader efforts to diversify production across North America. The renewed agreement comes as GM restructures its Chinese operations, shifts production of key volume models to Mexico, and continues adapting its global manufacturing footprint to evolving trade policies and intensifying competition from Chinese automakers.

Mexico Light Vehicle Sales Hit Record Through July 2026

Mexico's light vehicle market recorded its strongest January-July performance on record, with 885,349 new vehicles sold, a 5.0% year-over-year increase, according to data released by INEGI. The result marks the highest sales volume for the first seven months of any year since records began in 2005, reflecting continued domestic demand despite trade uncertainty, higher tariffs affecting parts of the automotive industry and ongoing discussions over the future of the US-Mexico-Canada Agreement (USMCA).

Mexico Auto Parts Sector Loses 180,000 Supply Chain Jobs

Mexico’s automotive manufacturing sector is experiencing a sustained labor contraction, driven by US import tariffs, shifts in electric vehicle demand, corporate cost-cutting, and accelerating factory automation.

Annual USMCA Reviews and Labor Audits Cloud Mexican Auto Outlook

Mexico's automotive industry and broader trade supply chains are confronting a prolonged period of operational and investment uncertainty following the US decision not to extend the USMCA by another 16 years, initiating an annual review process alongside heightened labor compliance scrutiny.

Japan Quake Halts Auto and Chip Plants, Snagging Supply Chains

Days after a powerful 7.1-magnitude earthquake struck southern Japan's Kyushu region, the industrial fallout continues to compound as major automakers and semiconductor manufacturers extend plant suspensions and scramble to mitigate widespread supply chain disruptions.

Nissan Keeps FY2027 Outlook After Stronger-Than-Expected Quarter

Nissan exceeded analyst expectations in the first quarter of its fiscal year, reporting an operating profit of ¥78 billion (US$497 million) for the three months ended June 30 and maintaining its earnings outlook for the fiscal year ending March 2027. The results mark an improvement from the ¥79 billion (US$503 million) operating loss recorded in the same period a year earlier and provide an early indication of progress under the restructuring plan led by CEO Iván Espinosa.

How Digital Tooling Enhances Operator Safety in Machining

In many machine shops, operators still rely on visual inspections or manual measurements to assess factors such as vibration, heat build-up, or tool deflection. These tasks often require close proximity to the machining process, increasing exposure to potential risks.

Isuzu Launches D-MAX Turbodiesel Pickup in Mexico

Marking its official entry into Mexico’s highly competitive light commercial vehicle (LCV) market after more than two decades focused exclusively on commercial trucks, Isuzu Motors has launched the Isuzu D-MAX pickup truck in the country.

Covestro and BYD Form Strategic Alliance for Next-Gen EV Tech

German materials manufacturer Covestro and Chinese vehicle and battery producer BYD have signed a memorandum of understanding to establish a long-term strategic alliance focused on developing and applying advanced material solutions for new energy vehicles, battery systems, energy storage, and next-generation technologies.