Mexico Auto Exports Drop 6.28% in 2025, Sharpest Fall in 5 Years

Mexico’s auto industry recorded its sharpest export decline in five years, with international vehicle sales falling 6.28% year-over-year from January to May 2025, according to the National Institute of Statistics and Geography (INEGI). Analysts attribute the drop to lingering effects of US tariff policies introduced during the Donald Trump administration, which have directly impacted demand.

Between January and May 2025, Mexico exported 1,334,667 light vehicles, down from 1,424,088 units during the same period in 2024. In contrast, 2024 had marked  a 12.17% annual increase over 2023.

“This marks the second consecutive monthly decline this year,” INEGI reported. In May alone, exports dropped 2.88% compared to May 2024, following a sharper 10.88% decline in April.

The United States, Mexico’s largest automotive trade partner, imported 1,079,690 vehicles during the first five months of 2025—a 5.72% decrease compared to the same period in 2024. The United States accounted for 80.90% of Mexico’s total vehicle exports.

“US tariffs and the economic slowdown in that market have negatively impacted Mexico’s vehicle exports,” noted Banamex’s Economic Studies Department.

Germany, another key market, imported 31,808 vehicles during the same period, reflecting a significant 29.25% decline. By contrast, Canada—the second-largest market—saw a 21.73% increase, with imports rising to 136,028 vehicles.

Analysts from Banco Base highlighted the dominance of these three markets—United States, Canada, and Germany—which together comprised 93.47% of Mexico’s total vehicle exports in early 2025.

On the production side, INEGI reported a slight 0.45% annual decline, with 1,645,673 vehicles manufactured from January to May 2025, compared to 1,653,141 units during the same period in 2024. May production dropped 2.03% year-over-year, following a 9.94% decline in April.