Sheinbaum Meets Auto CEOs as Sales Hit Records, Exports Slip

Mexican President Claudia Sheinbaum met this week with chief executives from the country’s largest automotive manufacturers to advance what she described as an “integral plan” for the sector, as new-vehicle sales closed 2025 at a record level while production and exports contracted amid US tariff pressure and uncertainty surrounding the 2026 review of the USMCA trade agreement.

“At the National Palace we led a meeting with chief executives of the automotive industry in Mexico, which contributes 4.5% to gross domestic product. With an intersecretarial commission, we are moving toward an integral plan,” Sheinbaum said in a message posted on social media.

The automotive industry accounts for roughly 4.5% of Mexico’s GDP and is a pillar of bilateral trade with the United States. The meeting took place against a backdrop of renewed trade tensions after US President Donald Trump imposed tariffs of up to 25% in 2025 on automobiles and auto parts imported into the United States, with partial exemptions under the USMCA framework. Trump has also said he may allow the trade pact to expire in 2026 and pursue a new agreement with Mexico and Canada.

Despite the rhetoric, Sheinbaum has repeatedly said that Mexico’s relationship with the United States “will continue,” even as her administration prepares for the treaty’s mandatory review.

The meeting brought together senior executives from Audi, BMW, Ford, General Motors, Honda, Mercedes-Benz, Nissan, Toyota, and Volkswagen. Representatives from the Mexican Automotive Industry Association (AMIA) were also present, including its president, Rogelio Garza, and its director general, Odracir Barquera.

Sheinbaum was accompanied by senior cabinet members, including Economy Minister Marcelo Ebrard; Finance Secretary Edgar Amador; Labor Minister Marath Baruch; Security Ministry Omar García; Infrastructure and Transport Minister Antonio Esteva; Energy Minister Elena González; and Environment Minister Alicia Bárcena. The heads of the Tax Administration Service (SAT), the National Customs Agency (ANAM), and the National Guard also attended.

According to sources cited by local media, the government committed to working with companies to identify, remove administrative obstacles, reduce operational costs and streamline procedures across areas such as customs, security, energy supply, labor regulation, logistics, infrastructure, environmental compliance and taxation. Officials said the goal is to prevent production relocations and job losses linked to higher export costs and weaker external demand.

The policy dialogue comes as new data highlight diverging trends within Mexico’s automotive market. Domestic sales of new light vehicles reached 1,524,583 units in 2025, up 1.3% from 2024 and the highest annual total since 2017. Industry analysts attributed much of that growth to the rapid entry and expansion of Chinese brands such as Geely, Changan, Great Wall Motor and Dongfeng.

At the same time, vehicle exports from Mexico fell 2.7% in 2025, while national production declined 0.9% year over year. Total output reached 3,953,494 units, down from 3,989,483 units in 2024.

The Mexican Association of Automotive Distributors (AMDA) said the sector closed 2025 with its weakest production performance since the COVID-19 pandemic, interrupting the gradual recovery seen in recent years. The group cited tariff-related uncertainty, higher trade costs and adjustments in production schedules as key factors behind the slowdown.

Trump’s trade policy has added volatility to the outlook. During a recent visit to a Ford plant in Detroit, the US president said he “does not need” products made in Mexico or Canada and that he was “not even thinking” about the USMCA.