Mexico Ranks 5th in 2024 Auto Output, Surpassing Germany

Mexico’s automotive industry ranked fifth globally in vehicle production in 2024 with a total of 4.2 million units, according to the International Organisation of Motor Vehicle Manufacturers (OICA). This marks a 5% increase compared to 2023 and places Mexico ahead of Germany and South Korea. The accomplishment is particularly notable amidst a 1% decline in global production, with total output dropping to 92.5 million units.

“Mexico outpaced Germany and South Korea by margins of 133,000 and 80,000 units, respectively,” the OICA reported. While traditional leaders in the automotive sector experienced declines, Mexico joined China, India, and Brazil as one of the few countries to report growth in output.

In the North American region, Mexico’s counterparts faced setbacks: US production declined by 1%, totaling 10.5 million units, while Canada experienced a 14% contraction. Despite these regional challenges, Mexico’s robust performance highlights its strategic advantage within the USMCA framework, reinforcing its role as a cornerstone of the North American supply chain.

Globally, China maintained its leadership in 2024, increasing production by 4% to reach 31.2 million units. The United States ranked second, followed by Japan (8.2 million units) and India (6 million units). South Korea and Germany ranked sixth and seventh, respectively, with Brazil, Spain, and Thailand completing the top ten.

Emerging economies collectively recorded a 1.7% rise in production, reaching 53.7 million units, while traditional manufacturers saw a 4.6% decline, producing 38.7 million units. Among emerging markets, India’s growth was fueled by expanding domestic demand and rising incomes, while Brazil benefited from green mobility incentives and increased investment in low-emission technologies.

Brazil attracted sizable investments, including Stellantis’ US$6 billion, Volkswagen’s US$3.2 billion, and Great Wall Motors’ US$2 billion. Although Great Wall Motors has expressed interest in Mexico, it has yet to finalize concrete investment commitments within the country.

“In January 2024, Mexico achieved its highest production levels in five years, assembling 307,069 units,” according to national industry data. Additionally, export volumes for light vehicles reached record highs.

The shift toward green vehicle manufacturing has also played a pivotal role. Over the past three years, leading OEMs, including Ford, GM, Stellantis, and Toyota, have expanded operations in Mexico to accelerate the production of electric and hybrid models.

However, challenges remain. Trade policy uncertainty and political tensions could impede sustained growth. President Donald Trump has criticized the heavy concentration of automotive manufacturing in Mexico. Additionally, S&P Global Automotive revised its North American production forecasts downward, reducing expected output by 155,000 units for 2025 and 78,000 units for 2026.