Trump Delays Tariffs, Xiaomi EV Sales Surge: Auto Week

This week in automotive news: Trump delays tariffs on Mexico and Canada, a major salary hike disrupts Mexico's trucking industry, and Xiaomi’s electric vehicle sales surpass expectations.

Other highlights include Michelin’s strong financial results, Grupo Salinas’ new plant, and Nissan’s latest sustainability milestone.

Start your engines—this is The Week in Automotive!

Trump Delays Tariffs on Mexico, Canada After Automaker Talks

In a move to address concerns within the automotive sector, President Donald Trump has granted automakers a one-month exemption from tariffs on imports from Mexico and Canada. White House Press Secretary Karoline Leavitt confirmed that Trump spoke with top executives from Stellantis, Ford, and General Motors (GM) on Wednesday to discuss the reprieve.

Mexico City Targets E-Vehicle Safety With New Regulations

The Mexico City government has announced plans to propose reforms to the Mobility Law and Traffic Regulations to regulate electric motorcycles and scooters. The initiative aims to enhance road safety, streamline traffic flow, and protect the environment.

Auto Industry Gets Relief from US Tariffs on Mexico, Canada

The United States’ newly imposed tariffs on products from Mexico, Canada, and China are raising trade tensions, but the Trump administration granted a temporary one-month exemption for the auto industry. As the April 2 deadline for broader tariff enforcement approaches, uncertainty looms over key sectors, with Mexico and Canada seeking diplomatic solutions to mitigate economic fallout.

Mexico Trucking Faces Disruption After 108% Driver Salary Hike

Mexico's trucking industry is facing significant disruption following an unprecedented agreement between the National Chamber of Freight Transport (CANACAR) and the Mexican Social Security Institute (IMSS) to increase truck driver salaries by 108%. The new wage standard, which took effect on Mar. 1, 2025, raises the daily base salary from MX$725.25 (US$34.81) to MX$1,511.55 (US$72.55). The measure has drawn strong opposition from transport sector representatives, who warn of severe financial repercussions.

Michelin Reports US$3.9 Billion Operating Income in 2024

French tire manufacturer Michelin reported a segment operating income of €3.4 billion (US$3.9 billion) in 2024 and €2.2 billion in free cash flow. The company says these results reflect its ability to adapt to uncertain market conditions. 

Mexico-US Car Industry: Trends, Cost Increases, and Tax Impact

Economic conditions, including tax increases, interest rates, inflation, and consumer spending, will influence the automotive market in both countries. Economic resilience will be essential for sustained growth in vehicle sales. North American manufacturers are facing competition not only from traditional automakers but also from new, mainly Chinese, entrants into the continent. 

Grupo Salinas Invests US$27 Million to Expand Italika Production

Grupo Salinas has invested over MX$500 million (US$27.6 million) in launching its second motorcycle assembly plant in Mexico, Ensamblika Guadalajara, located in El Salto, Jalisco. The facility will assemble motorcycles from Italika, Hero, and Benelli, focusing on meeting growing demand in northern Mexico while offering more affordable pricing.

Xiaomi SU7 Ultra EV Hits 10,000 Sales in 2 Hours, Beats Forecasts

Xiaomi has exceeded its projections for the SU7 Ultra, an electric vehicle (EV) unveiled on Feb. 27. Initially forecasting sales of 10,000 units across 2025, the company reached this milestone within just two hours. CEO Lei Jun highlighted the vehicle's competitive pricing and performance compared to Porsche and Tesla models.

Honda Relocates Civic Hybrid Production to Indiana Amid Tariffs

Honda will produce its next-generation Civic hybrid in Indiana instead of Mexico, responding to proposed 25% US tariffs on imports from Mexico and Canada, sources revealed. 

Nissan Assembles 3 Million Vehicles With CO2-Free Energy

Nissan Mexicana has reached a production milestone of 3 million vehicles assembled using CO2-free energy sources, including biogas, wind, and nuclear energy. This achievement has helped the company prevent the emission of more than 802,000t of CO2.