Mexico Auto Exports to Fall 12% Despite Tariff Cuts: Auto Week

This Week in Automotive News:

• Mexico’s auto exports are projected to drop 12% in 2025, despite reduced US tariffs on USMCA-compliant vehicles.

• Korean firm SL MEX announced a US$45 million investment to build a lighting plant in San Luis Potosi.

• Mexico City’s Metrobús unveiled four electric bi-articulated buses, a global first.

• Jetour and Soueast introduced their SUV and hybrid lineups in Mexico under a unified brand identity.

• Automotive FDI fell 30.5% in 1Q25, driven by US trade policies.

Start your engines—this is the Week in Automotive!

Mexico’s Auto Exports May Drop 12% in 2025 Despite Tariff Cuts

Mexico’s automotive exports are projected to decline by 12% in 2025 due to new US tariffs on vehicles, according to industry executives and data. While the US government reduced tariffs from 25% to 15% for vehicles meeting United States-Mexico-Canada Agreement (USMCA) origin requirements, the economic impact remains significant.

Korean Firm SL MEX Builds US$45 Million Plant in San Luis Potosi

SL MEX, a Korean automotive lighting supplier, has announced a US$45 million investment to  construct a production facility in the Logistik II industrial park in Villa de Reyes, San Luis Potosi. Spanning 8.9 hectares with over 14,000 square meters of built space, the plant will be led by SL MEX President Kyungsoo Koo.

Nissan Mexicana Achieves Carbon Neutrality in 2024

Nissan Mexicana announced that its corporate headquarters in Mexico City achieved carbon neutrality during the 2024 fiscal year by offsetting 513t of CO₂ equivalent through carbon credit purchases. This milestone is part of the company’s broader sustainability strategy, emphasizing reduced emissions and environmental responsibility across its operations.

Zoox Begins Robotaxi Production, Plans Vegas Launch in Late 2025

Amazon-backed Zoox has officially begun regular production of its custom-built autonomous robotaxis at a new manufacturing facility in Hayward, California, setting the stage for the commercial launch of its ride-hailing service in Las Vegas by late 2025. 

Metrobús Unveils World’s First Electric Bi-Articulated Buses

Mexico City’s Metrobús unveiled four fully electric bi-articulated buses, the first of their kind in the world, says Mayor of Mexico City Clara Brugada. The units are part of a broader strategy to accelerate the city’s transition to electromobility, benefiting over 1.8 million daily Metrobús users.

Puebla Auto Suppliers Face Legal Action Over Unpaid PTU

Three automotive suppliers in Puebla have failed to comply with Mexico’s mandated profit-sharing (PTU) obligations, affecting approximately 4,000 workers, according to the Authentic Confederation of Workers (CAT). The companies, which produce vehicle trunks for the Tiguan model and electrical harnesses, now face legal challenges initiated by employee unions.

Mexico’s Auto FDI Falls 30.5% in 1Q25 Amid US Trade Challenges

Foreign direct investment (FDI) in Mexico’s automotive manufacturing sector dropped 30.5% year-over-year in 1Q25, totaling US$2.5 billion, according to the Ministry of Economy (SE). This represents a decline of US$1.1 billion compared to the same period in 2024, primarily driven by US trade policies under President Donald Trump.

MG México Names Fernando Concheso Sales Director

MG México has appointed Fernando Concheso Venegas as its new Director of Sales. marking a milestone as the company surpasses 200,000 units sold since its entry into the Mexican market in October 2020. This move aligns with MG’s ongoing efforts to expand its national presence.

Mexico’s Tooling Industry Vital but Hampered by Talent Gaps

At TECMA 2025, Alfonso Peña, General Director, Clúster de Herramentales in Mexico, spotlighted the often-overlooked tooling industry. This sector, responsible for producing molds, dies, and tooling systems, underpins industries like automotive manufacturing, where 95% of Tier 1 parts are made in Mexico using high-precision tooling.

Honda Recalls 259,000 US Vehicles for Brake Pedal Defect

Honda is recalling 259,865 vehicles in the United States due to a defect that may cause the brake pedal to shift out of position, potentially interfering with braking functionality. The recall, detailed in filings by the US National Highway Traffic Safety Administration (NHTSA), affects select models of the 2023–2025 Honda Pilot, 2021–2025 Acura TLX, and 2023–2025 Acura MDX.

TECMA 2025 Kicks Off in Mexico, Aiming for MX$500 Million Revenue

TECMA 2025 officially opened at Expo Santa Fe in Mexico City, reaffirming its status as the leading trade show for metalworking, machine tools, and manufacturing technology in Latin America.

Jetour and Soueast Debut SUVs, Plug-In Hybrids in Mexico

Jetour and Soueast have officially launched their operations in Mexico, announcing their partnership during an event at Centro Citibanamex in Mexico City. The collaboration marks the relaunch of Jetour with a new business structure and Soueast’s debut in the Mexican market. Both brands are backed directly by their Chinese parent company and will operate under the unified identity Jetour Soueast with the slogan “Two Drivers, One Life.” Their combined lineup will feature SUVs catering to off-road enthusiasts and urban drivers alike.