USMCA Uncertainty Hits Mexico as Toyota Moves Tacoma

This week in auto news: USMCA uncertainty raised concerns that new assembly plant investments in Mexico could be delayed for up to a decade, prompting Ford to call for trade rules that favor higher North American content, while Toyota announced plans to shift part of Tacoma production to Texas. Meanwhile, Mexico's first-half vehicle exports rose 1.4%, alongside more than US$2 billion in electric vehicle investments. Globally, BYD moved closer to overtaking Tesla as Chinese automakers continued consolidating their regional dealer networks.

Hit the pedal to the metal—This week in automotive!

Mexico Light-Vehicle Exports Rise 1.4% in 1H26

Mexico exported 1.69 million light vehicles in 1H26, representing a 1.4% year-over-year increase, despite a 9.2% decline in June exports and continued weakness in vehicle production. The mixed performance highlights resilient external demand, while ongoing USMCA uncertainty and US tariffs continue influencing production planning across North America’s automotive industry.

Russia Fuel Shortages Drive Chinese EV Sales Growth

Russia’s fuel shortages, driven by disruptions across gasoline and diesel supply chains, have accelerated demand for Chinese electric vehicles (EVs) and plug-in hybrids, with a Moscow dealership reporting sales rising from two to three units per month to two to three per day. According to Autostat, plug-in hybrid vehicle sales increased 125% year over year during the first five months of 2026, while fully electric vehicle sales rose 19%, although EVs continue to represent a small share of Russia’s overall automotive market.

Toyota Moves Tacoma Production From Mexico to Texas

Toyota Motor will shift part of its Tacoma production from Baja California to San Antonio, Texas, through a US$3.6 billion investment that will add annual production capacity of 150,000 units and approximately 2,000 jobs by 2030. The move reduces the automaker's exposure to US tariffs on vehicles imported from Mexico while maintaining production at its Apaseo el Grande, Guanajuato, plant.

Yadea Targets 1,000 Mexico Stores by 2026

Yadea plans to expand its commercial network to more than 1,000 sales and service outlets across Mexico by the end of 2026, strengthening its domestic presence after launching motorcycle production at its Ocoyoacac, State of Mexico, facility. The expansion supports the company's strategy to serve the Mexican market while using the plant as a manufacturing hub for North America, Latin America and the Caribbean.

Aftermarket: The ‘After’ That Comes First

The aftermarket is the market that comes after. Its paradox is that this “after” is increasingly at the center of the automotive present. We are not talking only about replacement parts. We are talking about preventive maintenance, corrective repair, diagnostics, installation, accessories, consumables, tires, batteries, lubricants, workshop equipment, technical software, bodywork and paint, remanufacturing, logistics, distribution, and digital commerce. It is the vehicle’s second economic cycle: it begins when the unit enters use and extends throughout its entire useful life.

General Motors Keeps US Sales Crown in 2Q26

General Motors remained the largest automaker in the United States in 2Q26 despite reporting lower vehicle sales, maintaining its leadership in the country's light-vehicle market and its dominance in the full-size pickup segment. The company sold 714,896 vehicles during the quarter, down 4.2% year over year, while first-half sales declined 6.8% to 1,341,325 units as the broader US auto market contracted by about 3%.

Mexico's Chinese Auto Dealers Eye Market Consolidation

Mexico’s network of Chinese vehicle dealerships is expected to enter a consolidation phase after rapid expansion outpaced sales performance in 1H26, according to Urban Science Latam. Industry analysts expect some dealerships to close in the coming months as distributors seek to improve long-term profitability, even as Chinese automakers continue to post strong sales growth and expand their share of Mexico’s light-vehicle market.

Mexico Auto Sector Faces 10-Year Stagnation in Assembly Plants

Mexico's automotive industry is approaching a decade without the announcement of a new light-vehicle assembly plant as uncertainty surrounding the review of the United States-Mexico-Canada Agreement (USMCA) continues to delay long-term investment decisions. The United States' decision not to immediately extend the agreement for another 16 years, opting instead for annual reviews that could continue through 2036, has intensified concerns across North America's integrated automotive supply chain, despite record vehicle sales and continued investment in auto parts and manufacturing infrastructure.

Mexico Attracts Over US$2 Billion in EV Investment in 1H26

Mexico attracted more than US$2 billion in electromobility investments in 1H26, reflecting continued expansion across the electric vehicle value chain despite slower growth in battery electric vehicle (BEV) production. New projects focused on electric vehicle assembly, batteries, high-voltage wiring harnesses, automotive electronics, hybrid systems, thermal management, semiconductors, electric motors, and charging infrastructure.

BYD Set to Overtake Tesla in Global BEV Sales

BYD is on track to become the world's largest seller of battery electric vehicles (BEVs) again after delivering 557,090 fully electric vehicles during the second quarter of 2026, surpassing analyst expectations for Tesla's quarterly deliveries. Bloomberg consensus estimates project Tesla will report approximately 396,500 vehicle deliveries when it releases results next week, positioning the Chinese automaker to regain the global sales lead while continuing to expand international shipments and invest in vehicle technology.

Ford Urges USMCA Changes to Favor North American Auto Output

Ford Motor is calling for changes to the United States-Mexico-Canada Agreement (USMCA) that would favor automakers with higher levels of North American productions as the three countries begin the treaty's formal review process. CEO Jim Farley said the company wants revised rules that create more balanced competition with manufacturers that rely more heavily on imported vehicles, while reaffirming that North America should continue operating as an integrated manufacturing platform.

Mexico Auto Sales Rise 5.3%; AMIA Seeks USMCA Extension

Mexico's light-vehicle sales increased 5.3% year over year to 754,394 units in 1H26, but Mexico's automotive industry warned that uncertainty surrounding the United States-Mexico-Canada Agreement (USMCA) could weigh on future investment decisions despite the treaty remaining in force under its current review mechanism.

Tesla Europe Registrations Climb Ahead of 2Q26 Deliveries

Tesla recorded higher vehicle registrations across most major European markets in June, signaling a rebound in demand ahead of the company's second-quarter delivery report. Registration data, widely used as a proxy for vehicle sales, showed increases of 56% in Sweden, 43% in Italy and Portugal, 39% in Denmark, and more than 100% in France compared with June 2025. The rebound follows a year in which Tesla lost market share across Europe amid intensifying competition from Chinese automakers, an aging product lineup, and shifting consumer demand.

Why Fleet Electrification is Leading the EV Transition in Latam

Unlike mature automotive markets where personal vehicle ownership is widespread and electrification can build gradually through consumer replacement cycles, Latin America presents a different reality. Vehicle ownership is more concentrated, purchasing power is more heterogeneous, and infrastructure gaps remain significant.