Mexico Luxury Vehicle Sales Post Second Annual Decline

Luxury vehicle sales in Mexico recorded a second consecutive annual decline, falling 4.1% in 2025 after a 9.2% drop in 2024, according to data from INEGI. The contraction makes luxury vehicles the only segment of the Mexican automotive market to post two straight years of declines, even as total new vehicle sales continued to grow over the same period.

The downturn contrasts with broader market performance. New vehicle sales in Mexico did not contract in either year. Guillermo Rosales, president, Mexican Association of Automotive Dealers (AMDA), attributed the decline primarily to changes in automakers’ supply strategies rather than a weakening of overall demand. 

“There is a change in the available supply, which has shifted from cars toward multipurpose vehicles, as well as in consumer preferences, which have adopted these platforms more readily than sedans,” Rosales said in an interview. “The same is happening with compact cars and, of course, with luxury vehicles.”

Over the past decade, automakers have increasingly prioritized sport utility vehicles and crossovers, reducing production of traditional passenger cars. This shift has reshaped manufacturing strategies and showroom offerings while contributing to higher vehicle prices across the market. According to consulting firm J.D. Power, the average vehicle price in Mexico rose from MX$266,000 (US$17,290) in 2015 to MX$535,000 (US$30,620) in 2025.

Rosales said the pivot toward larger vehicles has altered pricing dynamics across segments. “Manufacturers’ bet on larger, more robust vehicles led to a rapid increase in vehicle costs,” he said.

The expansion of SUV portfolios has also narrowed the distinction between luxury cars and high-end multipurpose vehicles. Higher levels of equipment and advanced technology are now common across a wide range of SUVs. Current models frequently include dual digital dashboards exceeding 10 inches and rotating display screens—features once largely exclusive to luxury sedans.

“These attributes that used to differentiate luxury cars, such as advanced technology and premium finishes, can now be found in SUVs without necessarily belonging to a higher segment,” Rosales said.

INEGI data show that Alfa Romeo posted the steepest decline among luxury brands in 2025, with sales falling 30.6% to 311 units. Acura followed with a 28.6% decrease. Mercedes-Benz sales declined 17.4%, while Volvo recorded a 16.7% drop.

Other brands posted gains. BMW reported a 28.6% increase, selling 18,953 units in 2025. Lincoln sales rose 11.7%, Infiniti grew 8.1% and Lexus increased 4%.

In 2024, Acura sales fell 10.6% to 1,001 units, while Mercedes-Benz declined 10.3% to 12,905 vehicles. BMW Group, including Mini, posted a 2.1% decrease to 17,335 deliveries, while Volvo grew 33.4% to 7,105 units and Lincoln increased 45.2% to around 1,850 vehicles.

The Mexican Automotive Industry Association (AMIA) said the sector continued to recover from the disruptions caused by the 2020 pandemic, including semiconductor shortages and supply chain constraints. By 2024, improved logistics supported broader market recovery, although performance varied significantly by brand.

Rosales said these disparities largely reflect differences in product portfolios and exposure to the SUV trend. Brands with broader crossover and SUV lineups have been better positioned to offset declines in traditional luxury car models.

“In the multipurpose vehicle segment, the full range of prices and equipment is covered,” Rosales said. “You can find an SUV or crossover priced similarly to a luxury or compact car. In terms of price and equipment, these vehicles can compete directly with what used to be classified as luxury cars.”

Looking ahead, Rosales said luxury car sales are likely to continue declining, though at a moderate pace. He said current market conditions make a near-term reversal unlikely.

“There will be a continued trend of lower participation by luxury cars—not drastic, but persistent—relative to trucks,” he said. “In SUVs, you find prices equal to or higher than luxury cars, as well as comparable equipment, which creates direct competition in terms of value proposition.”

Industry data suggest that as long as automakers continue allocating production and marketing resources toward SUVs and crossovers, luxury cars will remain under pressure in Mexico’s evolving automotive market.

Meanwhile, the rapid expansion of Chinese automakers in Mexico is reaching the luxury segment, adding competitive pressure on traditional European brands. About 30 Chinese brands now operate in the country, and BYD’s premium marque Denza has entered the market with plans to expand its dealership network in 2026.