Mexico Auto Talks with CEOs as Sales Soar, Exports Soften

This week in automotive news: Mexico’s government engaged with auto industry CEOs as vehicle sales reached record levels, even as exports declined. BMW confirmed plans to begin production of the iX3 electric vehicle in Mexico in 2027 and extended its transmission partnership with ZF. At the policy level, shifts signaled reduced incentives for electric vehicles as consumer interest softened, amid broader global signals ranging from Europe’s EV adoption milestone to a profit downturn reported by Tesla.

Rev up your engines—this was the week in automotive.

K&S Mexicana Opens US$31 Million Plant in Aguascalientes

Aguascalientes expanded its automotive manufacturing base with the inauguration of a new wiring harness plant operated by Sistemas de Arneses K&S Mexicana. The project represents an investment of US$31 million and is expected to create more than 200 direct jobs. The facility, located in the San Francisco Industrial Park, is the company’s third production site in the state.

BMW, ZF Extend 8-Speed Transmission Partnership Into 2030s

ZF Friedrichshafen and BMW have signed a multi-billion-euro, long-term supply agreement extending their partnership on the 8-speed automatic transmission (8HP) through the late 2030s. The deal reinforces the role of the 8HP platform in future electrified passenger-vehicle architectures and provides long-term planning stability for both companies.

Nissan 2025 Production Drops 5.7% Despite December Uptick

Nissan said its global production increased in December 2025, even as full-year production, sales and exports declined, reflecting continued pressure on demand and the impact of restructuring measures across its global operations. The figures, released from the company’s headquarters in Yokohama, Japan, highlight a short-term improvement at the end of the year set against a broader annual contraction in output and shipments.

Sigrama Invests US$3 Million in Torreon Plant, Triples Output

Sigrama inaugurated its third production facility in Torreon, Coahuila, on Jan. 28, 2026, following a US$3 million investment expected to generate 180 new jobs and significantly expand the company’s industrial automation capacity. The plant aims to increase monthly production of electrical control panels from 200 units to more than 600 by the end of 2026.

Mexico Renews ‘Autos Chocolate’ Decree

Mexico’s Congress has reapproved the federal decree allowing the regularization of illegally imported used vehicles—known as autos chocolate—extending a policy that has already brought nearly 3 million units into the formal registry. According to figures cited in the decree’s latest renewal, about 2.99 million vehicles had been legalized by November 2024, up from fewer than 50,000 units when the program began in mid-2022. 

EU EV Registrations Overtake Petrol Cars for First Time

Electric vehicle registrations in the European Union surpassed those of petrol-only cars for the first time in December, marking a symbolic milestone in the region’s auto market as electrified vehicles continued to gain share, according to data from the European Automobile Manufacturers’ Association (ACEA). Fully electric cars accounted for 22.6% of new registrations during the month, narrowly overtaking petrol vehicles at 22.5%, while hybrids remained the largest category overall.

EV Interest Softens as 60% of Mexico Plans ICE Cars in 2026

Mexican consumers are expected to favor internal combustion engine vehicles in 2026, as interest in electric vehicles continues to soften, according to the EY Mobility Consumer Index 2025. The survey found that 60% of respondents in Mexico plan to prioritize combustion-powered vehicles next year, while only 23% expressed intent to purchase an electric vehicle, down from 32% in 2024. 

BMW Confirms iX3 EV Production in Mexico Starting 2027

BMW will move forward with plans to manufacture a new electric vehicle model in Mexico despite ongoing uncertainty tied to US trade policy under President Donald Trump. The German automaker confirmed it will produce the iX3, the first model in its Neue Klasse electric vehicle lineup, at its San Luis Potosi facility beginning in 2027. The plant is one of five worldwide selected to manufacture vehicles based on the new electric platform, alongside sites in Hungary, Germany, the United States, and China.

Mexico’s EV Boom Exposes Skills Gaps in Auto Service Sector

Mexico’s growing electric vehicle fleet is creating new operational and skills challenges for the country’s automotive service and repair sector, raising concerns about preparedness, safety and efficiency as electrification accelerates. While vehicle sales data point to steady consumer adoption, industry participants say the service ecosystem is not evolving at the same pace, exposing structural gaps that could affect reliability, costs and user confidence in the coming years.

Chirey Mexico Leverages Network to Navigate Tariff Changes

Chirey Motor Mexico has reaffirmed its long-term commitment to the Mexican market despite an evolving regulatory and tariff landscape reshaping the automotive sector. The company emphasized that its strategy relies on contingency planning, a consolidated distributor network, and access to Chery Group’s global industrial and technological platform, ensuring operational continuity, commercial stability, and sustained product and technology development in the country.

Mexico Plans Rollback of Hybrid, EV Incentives in 2026

Fiscal and regulatory incentives that have encouraged the adoption of hybrid and electric vehicles in parts of Mexico will be scaled back beginning in 2026, following policy changes approved by environmental and legislative authorities. The measures affect emissions-testing exemptions in Mexico City and vehicle registration tax benefits at the state level, signaling a shift toward limiting long-term incentives for low-emission vehicles.

Tesla Profit Plunges 46% as Vehicle Sales Weaken in 2025

Tesla reported a 46% decline in net profit for 2025 as vehicle sales fell and the company accelerated a strategic pivot toward artificial intelligence, robotics and autonomous systems, according to financial results released on Jan. 27. Net income totaled US$3.79 billion for the year, while revenue declined 3% to US$94.83 billion.

BMW Appoints Maru Escobedo CEO for Latin America

BMW has appointed Maru Escobedo as President and CEO of BMW Latin America, effective March 1, placing her in charge of operations across 27 countries from the company’s regional headquarters in Mexico City. Escobedo will succeed Reiner Braun, who led the region through a period of record sales, expanded electrified mobility offerings and sustained leadership in the premium segment.

First Brands Bankruptcy Hits Auto Plants in Northern Mexico

The automotive supply chain in northern Mexico is facing significant disruption following the Chapter 11 bankruptcy filing of US-based First Brands Group. The financial collapse has triggered the immediate closure of several manufacturing subsidiaries, leaving approximately 1,400 workers unemployed in Matamoros and affecting hundreds more at maquiladoras in Ciudad Juarez.

Sheinbaum Meets Auto CEOs as Sales Hit Records, Exports Slip

Mexican President Claudia Sheinbaum met this week with chief executives from the country’s largest automotive manufacturers to advance what she described as an “integral plan” for the sector, as new-vehicle sales closed 2025 at a record level while production and exports contracted amid US tariff pressure and uncertainty surrounding the 2026 review of the USMCA trade agreement.