Mexico Auto Output Drops 1.4% in Aug; Exports Rise 1.3%

Light vehicle production in Mexico declined 1.43% year-over-year in August 2026, marking the fourth consecutive monthly contraction for the domestic automotive manufacturing sector, according to official data released Monday by the National Institute of Statistics and Geography (INEGI).

Mexican assembly plants produced 344,940 units during the month, down by 5,011 vehicles compared to the 349,951 units manufactured in August 2025.

Data from INEGI’s Administrative Registry of the Light Vehicle Automotive Industry (RAIAVL) indicates that the August drop was driven primarily by scheduled technical shutdowns and production line adjustments at key automakers, including Ford and Nissan. Nissan experienced a 25.96% drop in output amid operational realignments and tariff considerations. Production was also impacted by a complete lack of output from Mercedes-Benz following the cessation of its operations in Mexican territory.

Cumulative national production from January through August 2026 reached 2,645,140 units, representing a 0.72% decline—or a reduction of 19,277 vehicles—compared to the 2,664,417 units assembled during the corresponding eight-month period in 2025.

"During August of this year, light vehicle production reached 344,940 units, representing a decrease of 1.4%; in the cumulative figure from January to August 2026, production was 2,645,140 units, which represents the third-largest volume recorded for a January-to-August period," said Adriana Ramírez, manager of Economic Studies, AMIA, during a press conference.

Despite the monthly contraction in total vehicle assembly, domestic sales maintained a 4.6% increase, while export figures provided a buffer for the broader manufacturing sector.

Auto exports rose 1.26% in August to 300,475 units, up from the 296,734 vehicles shipped abroad in August 2025.

"This recorded volume constitutes the second-highest export level for a month of August, trailing only the level observed in 2018, when 322,779 units were sent abroad," Ramírez stated, adding that the August figure represented a recovery from July, when light vehicle exports fell 9.69% year-over-year to 261,534 units.

Between January and August 2026, cumulative exports stood at 2,251,254 vehicles, remaining virtually flat with a minor 0.06% decline, a difference of 1,262 units, compared to the same timeframe last year.

By segment, light trucks accounted for 79.3% of total domestic production through August with 2,097,224 units, while passenger cars represented 20.7%, totaling 547,916 vehicles.

SUV manufacturing fell 7.2% year-to-date to 1,249,186 units, representing 47.2% of total national output.

"Pickups, which concentrate 31.9% of production, showed a growth of 18.9%, consolidating as one of the best-performing segments. In contrast, compact cars presented a negative variation of 13.6%," Ramírez noted.

In terms of foreign shipments, SUVs comprised 50.6% of total cumulative exports despite a 6.0% decline. Pickups represented 32.7% of exports, expanding by 18.6%, while compact vehicles accounted for 13.3% of exports, dropping 13.1%.

North America remained the primary market for Mexican vehicle exports. The United States received 1,716,610 units between January and August, representing 76.3% of total exports, backed by a 2.7% increase in U.S. purchases in August. Canada ranked second with 281,502 vehicles (12.5%), followed by Germany with 59,422 units.

"With these results, 88.8% of cumulative exports in 2026 were directed to North America," Ramírez said, noting that manufacturers continue to monitor USMCA preparatory negotiations and regional rules of origin specifications.

Other destination markets showed mixed dynamic performance. El Salvador recorded an 885.2% surge in demand to 16,305 units, alongside growth in Brazil and Colombia, while exports to Argentina, Australia, Japan, and the United Kingdom contracted.

The automotive industry accounts for nearly 4% of Mexico's national Gross Domestic Product (GDP) and approximately 20.5% of manufacturing GDP.