Mexico's Auto Output Rises in March; Q1 Exports Fall 6%

In March, several automakers in Mexico exceeded their production targets; however, exports declined by 6% in the first quarter of the year, marking the worst annual drop since Q121. 

Ford led the production surge, manufacturing 35,840 units—46% more than in March 2024, according to the National Institute of Statistics and Geography (INEGI). Stellantis and General Motors also reported annual production growth of 15.9% and 12.6%, respectively, while Toyota achieved a 69% increase. Asian automakers Mazda, Kia, and Honda posted gains of 15.5%, 15.2%, and 13.2%, respectively. 

However, not all automakers fared well. Audi’s production dropped by 30.8% compared to last March, followed by Volkswagen, which experienced a 27% decline.

In March alone, light vehicles production increased by 12%, with a total of 338,669 units manufactured. Exports for the month rose by 3.8%. 

Despite this positive monthly performance, first-quarter exports fell by 6%, amounting to 775,866 units—49,841 fewer than in Q124. Of these, 83% were destined to the United States.

While March showed signs of recovery, the first quarter’s decline was partly attributed to uncertainties surrounding tariffs. On Apr. 2, President Donald Trump announced a 25% tariff on all imported cars, alongside preferential tariffs for vehicles containing US-made parts. These measures are expected to significantly impact Mexico’s automotive industry, which relies heavily on a globally integrated supply chain. Currently, there are 39 automaker plants operating in Mexico.