Record Mexican EV Sales Contrast 57% Slump in Domestic Production

Mexico’s automotive sector is undergoing a stark divergence in its transition toward electrification. While domestic demand for electrified vehicles surged to record levels during the first seven months of 2026, driven by a wave of Asian imports and competitive pricing, local production of electric vehicles destined for export to the United States suffered a sharp decline.

According to data from the AMDA, sales of electrified vehicles, encompassing hybrid, plug-in hybrid, and fully electric models, grew 46.5% year-over-year from January to July 2026. Total domestic sales reached a record 112,313 units, up from 95,037 units recorded through the first half of the year.

With this expansion, electrified vehicles, often referred to locally as "green cars," captured 12.7% of total light-vehicle sales in Mexico through July. The rapid adoption marks a structural shift for the national automotive market compared to a decade ago, when green cars held a nearly non-existent 0.4% market share with just 3,732 units sold in 2016. Domestic sales figures previously rose to 27,662 units (a 4.6% market share) in 2021, before experiencing explosive growth in 2024 to reach 65,237 units, an 80.2% year-over-year jump that secured a 7.8% market share at the time. Growth has continued to accelerate, moving from a 17.5% year-over-year expansion in the January–July 2025 period to 46.5% in 2026.

Guillermo Rosales, president, AMDA, attributed the ongoing market surge to structural changes in supply and consumer economics. "The arrival of new global automakers and Asian brands has broadened the range of prices and equipment, which adds to the rising cost of gasoline and electrification," Rosales said.

Domestic Market Trends and Brand Performance

Data from the INEGI highlights momentum in monthly figures. In July 2026 alone, domestic electrified vehicle sales jumped 61.9% year-over-year to 17,276 units, marking the second-highest growth rate recorded for the month of July in the last decade.

Analyzing performance by powertrain type during the first half of 2026, AMIA reported that plug-in hybrid vehicles (PHEVs), heavily pushed by Chinese manufacturers, registered the highest growth rate at 207%, reaching 15,464 units sold. Fully electric vehicles (EVs) followed with a 47.5% increase to 13,768 units, while standard hybrids recorded a 27.8% gain to reach 65,805 units, retaining the largest absolute volume in the segment.

  Mexican Electrified Vehicle Sales (H1 2026)

Chinese automaker BYD established a dominant position in the market. According to figures provided by AMDA, BYD sold 33,969 units during the first half of the year, capturing 35.7% of Mexico's total low-emission vehicle market. Nearly four out of every ten electrified vehicles sold in the country during the period were manufactured by BYD, whose local product lineup includes the entry-level Dolphin Mini among four battery-electric models and seven plug-in hybrids priced between 399,000 and over 950,000 Mexican pesos.

BYD has outlined an annual sales target of 80,000 units in Mexico, an ambition that would position it ahead of legacy automotive brands such as Ford and Honda. However, market analysts at consulting firm Urban Science noted that intense market fragmentation, driven by more than 50 active vehicle brands in the country, presents an ongoing challenge to reaching that benchmark.

Beyond BYD, other manufacturers captured market share in specific sub-segments:

• MG Motors: Sold 2,499 units in H1, primarily propelled by its ZS Hybrid+ SUV.
• KIA: Reported 2,212 units, anchored by sales of the Sportage Hybrid.
• Changan: Logged 475 units.
• General Motors: Delivered 235 units to the domestic market, led by the Chevrolet Equinox EV.

Top-selling luxury and premium electrified models in Mexico currently include Toyota's hybrid Prius, Lynk & Co's 08 plug-in hybrid, and Zeekr's 07 battery-electric vehicle, according to AMDA rankings. Other Asian brands, such as Geely, Chirey, Jetour, Soueast, and GAC, have also expanded their footprint, alongside traditional OEMs like Toyota and Kia expanding their local hybrid offerings. Industry analysts point to price competition among brands and adoption by ride-hailing services such as Uber and DiDi as core drivers of volume.

The expansion of available options is supported by trade association metrics. The Electro Movilidad Asociación (EMA) reported that 170 electrified models are currently on sale in Mexico, comprising 110 battery-electric models and 60 plug-in hybrid or range-extended vehicles (PHEV-REEV).

"The electromobility ecosystem continues to develop in Mexico at an accelerated pace, with more models, manufacturers, and users who have verified the user experience offered by these new technologies," the EMA stated in an official release. The organization noted that total market sales for these clean technologies surged 211.7% between 2021 and 2025, rising from roughly 47,000 units to more than 146,700 units annually, aided by expanded charging infrastructure, improved consumer awareness, and specialized financing options.

Geographically, domestic adoption remains concentrated in urban centers. Four federal entities account for 55.7% of national sales:

• Mexico City: 21,766 units
• State of Mexico: 12,736 units
• Nuevo León: 9,947 units
• Jalisco: 8,513 units

Production Slump and Export Headwinds

In stark contrast to domestic sales momentum, domestic manufacturing of electric vehicles dropped sharply over the same timeline. According to data from the AMIA and Inegi, Mexican EV production destined almost entirely for foreign export plunged 57% during the first half of 2026.

Mexican assembly plants produced 47,411 electric vehicles in the first six months of 2026, down from 110,002 units assembled during the same period in 2025. Industry analysts attribute the slowdown to a pullback in purchasing demand across the United States, the primary export destination for Mexican-made vehicles.

The decrease affected major American OEMs operating in Mexico, including General Motors, Ford, and Toyota:

• Chevrolet Equinox EV (GM): Assembly at Mexican facilities fell 81.6%, declining from 38,995 units in H1 2025 to 7,185 units in H1 2026.
• Chevrolet Blazer EV (GM): Assembly fell 80%, dropping from 10,469 units in H1 2025 to 2,099 units in H1 2026.

Mexican EV Export Production (H1 2025 vs. H1 2026)

Mexico's role as an electric vehicle manufacturing hub for the North American market began in 2020 with Ford, later expanding to include General Motors, Toyota, and Stellantis. While production grew steadily alongside U.S. consumer purchasing incentives, recent demand deceleration in North America has forced OEMs to scale back assembly schedules, creating a dual-track market where Mexican factory floors slow down even as domestic dealership sales reach record highs.