Mexico Auto FDI Falls as Tariffs Impact Exports: Auto Week

This week in Mexico’s automotive sector: FDI fell 41% amid economic slowdown and US tariffs, prompting Audi and Hyundai to adjust exports. Industry leaders at BAM 2025 discussed USMCA challenges and policy reforms. BYD surpassed 80,000 vehicle sales, while GM Mexico unveiled the 1,250‑hp Corvette ZR1X, highlighting innovation. EV adoption continues to accelerate across markets.

Floor it to the metal—more news below:

Mexico’s Auto FDI Down 41% Amid Tariffs, Economic Slowdown

Foreign direct investment (FDI) in Mexico’s automobile and truck production dropped 41% year-on-year in 1H25, totaling US$3.59 billion, according to preliminary data from the Ministry of Economy (SE). The decline follows a record inflow of US$6.09 billion in the same period of 2024.

Buffett’s Berkshire Sells Final BYD Shares After 17 Years

Berkshire Hathaway has fully exited its stake in Chinese automaker BYD, closing a 17-year investment that delivered more than twentyfold returns. The move was disclosed in a filing by Berkshire Hathaway Energy, which showed the value of its BYD holdings had dropped to zero as of March 31, 2025, from US$415 million at the end of 2024.

Audi Mexico Faces 27.5% US Tariff on Q5 Exports

As of April 2025, Audi Mexico faces a 27.5% tariff on exports of its Q5 model to the United States due to non-compliance with regional content requirements under the USMCA trade agreement. The tariff includes a 25% penalty for failing to meet Value of Regional Content (VRC) thresholds, plus a 2.5% most-favored-nation rate, similar to the rate applied prior to policy changes under Donald Trump’s administration.

GM Mexico to Debut 1,250‑hp Corvette ZR1X in 2026

General Motors de México confirmed that the Chevrolet Corvette ZR1X will debut in Mexico in 2026,marking GM Mexico’s 90th anniversary. The high-performance hybrid sports car delivers 1,250 horsepower, all-wheel drive, and accelerates from 0 to 100 km/h in under two seconds.

BYD Reaches 80,000 Sales, 80 Stores in Mexico Amid Tariff Threats

BYD has exceeded 80,000 vehicles sales and established 80 dealership locations in Mexico within a few months, placing the country among the automaker’s top seven global markets. The milestone was announced during the opening of a new dealership in Santa Monica, State of Mexico.

The Consumer Journey to Electric Vehicle Adoption

Electric vehicles (EVs) are no longer confined to prototypes or niche markets. They are entering mainstream conversations across industries, governments, and households. Yet, the real story of adoption cannot be understood solely through statistics on sales or production.

Mexico Auto Leaders Discuss Tariffs, USMCA, Exports at BAM 2025

The Business Automotive Meeting (BAM) 2025, organized by the Clúster Automotriz Metropolitano (ClautMet) at Universidad Iberoamericana, Campus Santa Fe,  convened leaders from the automotive industry, government, and academia to examine the sector’s current dynamics and future outlook in Mexico.

Mexico Must Strengthen Auto Policies, Says Meschoulam at BAM

Mauricio Meschoulam, internationalist and PhD in Public Policy, provided an in-depth analysis of Mexico’s automotive manufacturing sector at the Business Automotive Meetings (BAM) 2025, held Sept. 18 at Universidad Iberoamericana, Santa Fe. His remarks highlighted systemic challenges in workforce development, supply chain management, industry competitiveness, and the broader geopolitical context influencing investment decisions.

Hyundai Redirects Mexican Tucson Exports to Canada

Hyundai has shifted exports of its Mexico-produced Tucson SUVs to Canada following new US tariffs that increase costs for vehicles, parts, and raw materials imported from outside the country.