Mexico Tightens Auto Trade Tariffs: The Week in Automotive

This week in auto news, Mexico reshaped its automotive trade landscape by imposing a 50% tariff on imported vehicles, a move that threatens up to US$1 billion in Indian exports and has prompted New Delhi to seek a bilateral agreement. Mexico’s auto parts sector showed early signs of stabilization, while global automakers such as Ford and Rivian adjusted their EV strategies amid softer demand and broader structural shifts across the industry.

Push your engine past the red line—this is the Week in Automotive.

India Seeks Trade Deal With Mexico to Offset Tariff Impact

Agrawal said technical-level talks are already underway, following an online meeting this month with Mexican Deputy Economy Minister Luis Rosendo. “India has been working with Mexico since September to reach a trade agreement that can mitigate the impact quickly,” he said, without providing details on the scope or structure of the proposal. He added that “Mexico’s main objective is to avoid affecting Indian exports,” suggesting room for negotiation despite the tariff increases.

Rivian Debuts Next-Gen EVs With Lidar, Chips, Autonomy+

Rivian Automotive announced that its next generation of vehicles will feature lidar sensors, custom chips, and a proprietary autonomy computer, positioning advanced driver-assistance  systems and future self-driving capabilities as central to its growth strategy. The company also detailed pricing and launch timing for its new Autonomy+ subscription, aiming to reassure investors amid slowing US electric vehicle demand. Shares fell 6.1% following the announcements.

Mexico’s Auto Parts Industry Toward 2026: A Turning Point

The story of Mexico’s auto parts industry has always been one of evolution. From its early role as a component manufacturer to its current position as a global benchmark in several segments, the industry has consistently risen to new horizons. Today, the challenge is to complement our manufacturing strength with deeper engineering and technological capabilities. And the opportunity within reach is to become an ally in tech-driven and greener mobility in North America.

Ford Resets EV Strategy After US$19.5 Billion Writedown

Ford announced a US$19.5 billion writedown and a sweeping reset of its electric vehicle strategy, marking one of the most significant pullbacks from electrification by a legacy automaker. The move signals a recalibration driven by softer market demand, shifting regulations and mounting profitability pressures.

Mexico Auto Parts Sector Stabilizes, Output Hits US$89 Billion

Mexico’s auto parts industry recorded US$89.24 billion in production between January and September 2025, supported by a stronger performance in September that helped stabilize declines accumulated earlier in the year, according to data from the National Auto Parts Industry (INA). 

EVs Pose Similar Pedestrian Risk as ICE Cars: UK Study

Electric vehicles are no more dangerous to pedestrians than petrol or diesel cars, according to a new UK study that challenges concerns over low vehicle noise and higher curb weight. Research published in Nature Communications by the University of Leeds found no statistically significant difference in pedestrian collision rates or injury severity when comparing electric and internal combustion vehicles based on miles driven.

JAECOO 7 SHS Sets Hybrid SUV Range Record at 1,675 km

JAECOO has set a new standard for hybrid vehicle range after its JAECOO 7 SHS completed 1,675.1 km without requiring an electric recharge or fuel refill, achieving the longest real-world distance by a Super Hybrid SUV in the 2025 Super Hybrid Challenge. The record, accomplished by Team AA, surpassed the previous 1,613 km mark and positions the Super Hybrid System (SHS) as a benchmark in extended-range performance.

Closing Talent Gap Requires Addressing Root Causes: 3M

Closing talent gaps requires addressing root causes, and the first step is recognizing how early cultural barriers shape career decisions. At 3M, we combine internal programs — such as structured mentorship within the Women Leadership Forum and technical mentoring tracks — with external initiatives that bring female STEM professionals directly into classrooms. These efforts allow girls to see real career trajectories and reduce the perception that engineering or technical manufacturing roles are exclusive to men. We also work with partners like Fondo Unido to expand STEM outreach in schools. These interventions form part of a long-term strategy to strengthen the talent pipeline and ensure more women consider and remain in technical fields.

Mexico’s 50% Tariff Threatens US$1 Billion in Indian Auto Exports

Mexico’s decision to raise import tariffs on passenger vehicles from 20% to 50% is expected to affect roughly US$1 billion in Indian vehicle exports beginning next year, impacting automakers including Volkswagen, Hyundai, Nissan and Maruti Suzuki. The measure, approved by the administration of President Claudia Sheinbaum, applies to imports from countries without free trade agreements with Mexico, including India and China.