Ten years after laying the first stone, BMW Group Plant San Luis Potosí has ​​consolidated itself as one of the German automaker’s strategic operations globally and as a relevant link within the automotive chain in Mexico.

The story began in 2016 with the announcement of an investment in Villa de Reyes, San Luis Potosí, which aimed to transform the country into a production platform for premium vehicles destined for international markets. A decade later, the operation has accumulated investments of nearly two billion dollars and is preparing to enter a new phase marked by electromobility .

“Ten years ago, we began building a plant; today we see the impact of having built a community of talent, innovation, and collaboration that has contributed to the growth of San Luis Potosí and the strengthening of the Mexican automotive industry. The most important part of this story is not only the vehicles we produce, but the people who have made this project possible and the opportunities we have created together,” highlighted Klaus von Moltke, President and CEO of BMW Group Plant San Luis Potosí.

Since the start of operations in 2019, the plant has produced more than 550,000 vehicles for export, integrating into the BMW Group’s global manufacturing network and strengthening Mexico’s position within the global automotive industry.

Among the manufactured models, the BMW 3 Series stands out, as well as the M2 and the 2 Series Coupé, the latter two manufactured exclusively in Mexico and exported to customers all over the world, in addition to the BMW M2 Racing and the BMW M2 CS, limited production versions.

Currently, approximately 3,700 employees are part of the daily operation of the plant, and it has also generated around 32,000 jobs indirectly, through suppliers, specialized services, logistics, construction, commerce and other activities linked to the value chain.

The brand works with a network of suppliers that has more than 310 production sites in Mexico , which strengthens national supply chains under the principle of local production.

As part of its global electromobility strategy, the BMW Group announced in 2023 an €800 million investment in the production of electric vehicles and high-voltage batteries in Mexico . This investment is part of a long-term commitment that increases the automaker’s cumulative investment in the country and represents a 110,000-square-meter expansion of the plant’s operations.

“The next stage for BMW Group Plant San Luis Potosí will be marked by the expansion of its capabilities for integrating electric vehicles into our production line. This technological and organizational adaptation will allow us to further strengthen our team and optimize our processes in the face of an increasingly volatile environment. We are preparing the plant for the future, strengthening it and making it even more competitive in a constantly changing global environment,” emphasized Klaus von Moltke.

Starting in 2027, the plant will produce two models from the Neue Klasse platform, the BMW iX3 and the BMW i3, consolidating Mexico’s strategic role in the future of global mobility.

The plant’s evolution has been accompanied by a talent development strategy . More than 1,200 young people have participated in professional internship programs, and more than 570 apprentices have completed the Dual Vocational Training Program, inspired by the German model of technical training, with a 95 percent hiring rate.

“BMW Group’s vision has been to prepare new generations for an increasingly technological, digital, and electromobility-oriented industry. As a result, more than 110 Mexican employees have participated in international projects within BMW Group’s global network in countries such as Germany, Hungary, China, the United States, and South Africa,” the company emphasized.

Furthermore, during the last decade, BMW Group has promoted, among other actions, initiatives focused on education, community development, sports and culture , contributing to the well-being of more than 220,000 people in San Luis Potosí.

According to data from the municipality of Villa de Reyes, exports increased by 1,600% since BMW’s arrival. By November 2025, the municipality accounted for 42% of total exports and generated 30% of the state’s gross domestic product.

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The Mexican automotive industry showed mixed signs during May 2026 : while light vehicle production registered a drop, exports grew due to demand from the US market, the National Institute of Statistics and Geography (Inegi) announced .

According to the Administrative Registry of the Automotive Industry of Light Vehicles (RAIAVL), in the fifth month of the year 342,926 units were produced  in automotive plants installed in Mexico, 3.7% less than in the same month of 2025.

Meanwhile, in the first five months of 2026, 1,642,083 cars were manufactured, representing a drop of 0.09% compared to the same period last year.

The report noted that the sector’s production structure continued to be dominated by  light trucks , which accounted for 80% of total production in the January-May period, while the remainder corresponded to automobiles.

In January-May 2026, Stellantis  was one of the brands that showed good performance in terms of its manufacturing with an increase of 37% over the same period in 2025. It was followed by Volkswagen with an increase of 34 percent.

Exports rebound

Last May, exports totaled 306,288 units , which represented an increase of 1.7% compared to the same month in 2025.

Meanwhile, in the January-May period of this year, 1,388,236 light vehicles were shipped abroad , an increase of 4% compared to the same period last year.

The main destination for vehicles assembled in Mexico continues to be the United States , a market that accounted for 75.4% of international shipments.

Volkswagen and Stellantis were the brands with the largest increases in their exports, with increases of 61% and 45.1% year-on-year, respectively, during the first five months of 2026.

Data from last May shows an industry that maintains its export capacity, although it faces adjustments in its production.

Factors such as changes in vehicle electrification and the reorganization of supply chains influence the performance of the automotive sector, which is one of Mexico’s manufacturing pillars.

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In light of the review of the United States-Mexico-Canada Agreement (USMCA) , the National Agency of Automotive Sector Suppliers (Anapsa) raised the need for Mexico to promote the signing of “parallel letters” that would protect heavy and light vehicles and auto parts from possible tariff measures by the United States.

Alberto Bustamante, president of Anapsa, explained that the automotive industry is once again at the center of North American trade discussions due to its importance in the trade between Mexico and the United States.

The executive noted that the sector represents approximately 5% of the national Gross Domestic Product (GDP) and 24% of the manufacturing GDP, so any modification to trade rules would have significant repercussions for the Mexican economy.

“Difficult times are coming, the issue is that a good negotiation has to be done,” he stated during a discussion organized by Mundi .

Although Anapsa has already presented the proposal to the Ministry of Economy (SE) , Bustamante indicated that so far they have not received a response regarding the possibility of incorporating parallel letters or a similar scheme that would help protect the industry from potential tariff measures by the United States.

He also warned that one of the proposals currently under discussion includes raising the “regional content value of vehicles ,” as well as incorporating a requirement that 50% of said content must come from the United States.

Bustamante explained that the regional content value corresponds to the percentage of components, materials and manufacturing processes that a vehicle incorporates from North America to access the tariff benefits of the USMCA.

Currently the requirement is 75%, but the proposal would raise that percentage to 85% and add a specific minimum share of content produced in the United States.

“There is an increase in the value of regional content, which now includes US content that is not currently available,” he commented.

The representative of Anapsa indicated that the organization stated that it is a priority to avoid establishing mandatory percentages of national content for any of the three member countries of the trade agreement, considering that this could alter the productive integration that currently exists in the region.

He argued that the review of the USMCA is taking place in a different context than originally planned and that, in practice, it has evolved into a renegotiation driven by the trade policies of the administration of Donald Trump, President of the United States.

According to the business leader, the outcome of the negotiations will be decisive for an industry that currently produces around 4.2 million light vehicles per year in Mexico and whose auto parts chain exceeds 120 billion dollars in annual production.

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The paint industry maintains a strategic relationship with the Mexican automotive sector , not only for its participation in manufacturing processes, but also for the repainting and repair market that accompanies the growth of the vehicle fleet in the country, as stated by Flor de María González Mariblanca, general director of the National Association of Paint and Ink Manufacturers (Anafapyt) .

The executive emphasized that each automotive plant is also an advanced paint shop, where coating processes are a fundamental part of production. One example is the Volkswagen plant in Puebla, whose technical capacity allows for the coating of up to 90 vehicles per hour , an efficiency standard that underscores the importance of this sector for the national supply chain.

Although the main market for the paints industry continues to be the architectural segment, which represents 64% of the total volume of the sector, original automotive manufacturing maintains a relevant share with around 102 million liters (equivalent to 51%) of coatings destined for new vehicles.

Added to this is the automotive refinishing segment, which registers a consumption of close to 86 million liters and has become one of the most dynamic markets for paint manufacturers.

In an interview with T21, González Mariblanca explained that the growth of the vehicle fleet directly drives the demand for specialized coatings.

According to the consulting firm Integrate Data Facts (IDF) , at the end of 2025, Mexico had a vehicle fleet of 36.1 million units in circulation, reflecting the need for maintenance, repair and repainting in the automotive industry.

Impact on road safety

The general manager of Anafapyt indicated that road safety signage is a relevant factor for this market, as there is a constant demand for specialized repair systems, finishes and coatings, which contributes to safeguarding the lives of pedestrians and drivers .

In that regard, he noted that the paints used on road infrastructure serve specific safety functions supported by technical regulations . “Colors like yellow are for prevention, while white and black contain anti-reflective coatings and are based on visibility and accident prevention studies.”

In addition to its connection with the automotive industry, Anafapyt seeks to strengthen its relationship with transport organizations to promote projects related to road safety .

The association works with representatives from the National Chamber of Passenger and Tourism Transportation (Canapat) and the National Association of Bus, Truck and Tractor-Trailer Producers (ANPACT) to analyze the impact of modifications to urban colors and signage on the visibility of operators and pedestrians.

Challenges in the paint industry

González Mariblanca explained that the paints and inks sector faces new challenges stemming from the international environment. The conflict in the Middle East has led to an approximately 20% increase in the costs of various raw materials used in the manufacture of paints and coatings.

Given this scenario, several companies have begun to pass on some of these increases to final prices, after absorbing the impact on their production costs for months.

To address supply chain pressures, the industry is focusing on strengthening supply chains through greater diversification of international suppliers. This will be one of the main objectives of the Latin American Coatings Show (LACS), an event organized by Anafapyt that will bring together representatives from 34 countries this July.

Flor de María explained that Mexico has become an attractive market for global manufacturers and suppliers due to its strategic position in the North American region and the importance of the country’s skilled workforce in sectors such as automotive, construction, and infrastructure.

Another factor transforming this industry is the incorporation of artificial intelligence (AI). He explained that new technologies already allow for optimizing formulations, managing color databases, and developing simulations to accelerate innovation processes.

Far from replacing jobs, he stated, AI is becoming a tool to improve the productivity of technicians and engineers specializing in coating development.

For the second half of 2026, the industry anticipates a scenario of higher costs, pressure on raw materials, and challenges associated with the renegotiation of the United States-Mexico-Canada Agreement (USMCA) . However, Anafapyt believes that Mexico maintains significant competitive advantages thanks to its manufacturing capacity, skilled workforce, and growing attractiveness to new international investment.

For the paints and inks sector, the priority will be to ensure the supply of inputs and strengthen its integration with strategic industries such as the automotive industry, which continues to be one of the main drivers of demand in the country.

The size of the paint market in Mexico was approximately 3.438 billion dollars (USD) in 2025, and is expected to exceed 5 billion USD by 2034, at an annual growth rate of 4.65% during the period 2026-2034, according to figures from the consulting firm Imarc Group .

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As part of a one billion dollar (USD) investment, General Motors (GM) will manufacture the Aveo and Groove models at its Ramos Arizpe, Coahuila complex, which will be destined for the domestic market, announced Francisco Garza, president and CEO of the automaker in the country.

“We will start in 2027 with Chevrolet Groove and later add our beloved Chevrolet Aveo, currently the best-selling vehicle in the Mexican market,” the executive highlighted.

During the event “General Motors of Mexico’s New Project for Mexico,” held in Toluca, State of Mexico, Garza highlighted that this new project is part of the one billion dollar investment announced last January for the operations of the US-based firm in the country and is aligned with the Mexico Plan .

“It is a project conceived in Mexico for Mexico, which strengthens the national industry, takes advantage of the installed capacity in our country and contributes to reducing dependence on foreign countries, promoting sustainable industrial development in line with the objectives of the Mexico Plan,” he emphasized.

The executive indicated that starting next year they will begin local assembly of units for the national market, with the goal of reaching an approximate capacity of 80,000 vehicles per year by 2030 .

This announcement comes in a context where Mexico imposed, since January 1, 2026, tariffs of up to 50% on 1,463 tariff classifications for countries with which it does not have a trade agreement, including China, Singapore, Indonesia, the Philippines, India, Thailand, Malaysia and others, in order to protect the country’s industrial sectors such as textiles and clothing, automotive and steel.

In his remarks, Marcelo Ebrard, head of the Ministry of Economy (SE) , said that 80,000 vehicles that are being imported from Asia to Mexico, which do not have Mexican parts, nor are they assembled here, will begin to be produced in the country.

“Those 80,000 vehicles represent a very big impact for General Motors to preserve, maintain and grow its manufacturing platform in our country, protect jobs, the plants they have, and it will mean a cost, an investment, because it was cheaper to do it elsewhere, but what must be acknowledged about General Motors is the decision made by its director, its global CEO, Mary Barra, to invest one billion dollars for now, plus whatever comes later,” he said.

Similarly, Ebrard indicated that these vehicles will be manufactured with more parts and components made in Mexico.

For his part, Francisco Garza pointed out that the Ramos Arizpe complex comprises five plants and employs more than 5,000 people, making it a benchmark for the country’s industrial transformation. He noted that with the projected 80,000 units, “we will be exceeding our vision of increasing vehicle production for the domestic market by 10% by 2030.”

With this project, GM is setting a precedent in the automotive industry at a time when the policy of Donald Trump, President of the United States, seeks the return of these companies to the United States.

According to data from the National Institute of Statistics and Geography (Inegi) , GM manufactured 291,031 light vehicles in Mexican plants during the period January-April 2026 , which meant a growth of 2.9% compared to the same cycle of 2025.

In the same period, the brand exported 263,159 units , a growth of 0.1% compared to the first four months of last year.

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In April 2026, the Mexican automotive industry again registered a positive balance in terms of the manufacture and export of light vehicles, according to the National Institute of Statistics and Geography (Inegi) .

In the fourth month of the year, automobile manufacturing in Mexico totaled 329,878 units, representing an increase of 2.1% compared to the same month in 2025, when 322,964 vehicles were manufactured.

In turn, in the period January-April 2026  , 1,299,157 cars were produced , a growth of 0.9% compared to the same period last year, according to the Administrative Registry of the Automotive Industry of Light Vehicles (RAIAVL).

In the first four months,  light trucks accounted for 80%  of the total produced , with 1,038,882 units; the remainder corresponded to automobiles (260,275).

In the January-April cycle, the brands that stood out in their production in Mexican plants were Volkswagen  with an increase of 42.3%, adding 133,863 units compared to 94,065 in the same period of 2025.

Stellantis  also showed good results in terms of its manufacturing with an increase of 33.2%, totaling 148,203 units over the 111,227 vehicles produced in the same period last year.

KIA registered a 10.6% increase, adding 101,565 units in the first four months of the year compared to the same period in 2025, when it manufactured 91,810 vehicles.

Exports also moved up the lane in April 2026. Shipments of light vehicles manufactured in Mexico abroad totaled 286,317 units, representing an 11.4% increase compared to the same month in 2025.

Meanwhile, in January-April of this year, 1,081,948 vehicles were exported , a 4.6% increase compared to the same period last year.

The United States  was the main destination for light vehicle exports, accounting for 76% , or 821,984 units.  Canada followed  with 134,245 vehicles , representing 12.4% of exports.

Volkswagen, which showed a 63.1% increase compared to the same period in 2025, totaling 109,119 units; Stellantis with a 38.3% increase (117,063 vehicles); and KIA with a 15.1% increase (77,972 units) were among the brands that registered the highest exports in the first four months of 2026.

The figures for April reflect a positive environment for the Mexican automotive industry, following the good results obtained last March, when vehicle manufacturing in the country’s plants registered an annual increase of 2.5% and exports grew 4.2% year-on-year.

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The strong performance of the Mexican automotive industry continues to be reflected in the sector’s figures. During April 2026, 118,859 light vehicles were sold in the domestic market, representing an 8.6% increase compared to the same month in 2025, when 109,420 units were sold, according to data from the  National Institute of Statistics and Geography (Inegi) published on Wednesday.

The positive trend in car sales also extended into the first four months of the year, with 500,512 units sold, an increase of 4.8% compared to the same period last year, in which 477,409 vehicles were sold.

According to statistics from the  Administrative Registry of the Automotive Industry of Light Vehicles (RAIAVL) , the accumulated figure represented the best result for a January-April period in the last nine years.

In the January-April 2026 cycle, the brands that stood out in vehicle sales were Nissan  with 17.3%,  General Motors  with 13.2%,  Volkswagen  with 11%,  Toyota  with 8.1% and  KIA  with 7.2% market share, according to the  Mexican Association of Automotive Distributors (AMDA)  and the  Mexican Automotive Industry Association (AMIA) .

The report highlighted that Chinese brands showed variable performance , although they continue to gain ground in the Mexican market.

In that sense, Geely increased its sales by 283.3% in April 2026 compared to the same month in 2025, Changan grew by 101.1%, JAC fell by 5.4%, MG Motor declined by 4.4%, and Foton increased its annual sales by 2.9%.

Other brands in the sector performed well year-on-year in the fourth month of the year. Stellantis grew 15.8%, Hyundai  advanced 13.7%, Honda rose 2%, Volkswagen accelerated 5%, and Mitsubishi  reported a 4.6% increase in sales.

With the April rebound in annual sales of light vehicles, the Mexican automotive industry has now recorded two months of positive figures, following a 0.3% drop last February.

The above reflects an improvement in the purchasing power of Mexican consumers, in an economy that is beginning to show slight signs of recovery, although specialists have pointed out that risks still persist, mainly due to external factors such as the conflict in the Middle East and a constantly changing global trade policy, framed by the imposition of tariffs.

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Amid growing trade tensions and on the eve of the review of the United States-Mexico-Canada Agreement ( USMCA) , the Mexican automotive sector faces one of the most complex and, at the same time, decisive moments in its recent history.

During the conference “State of the Mexican Automotive Sector: USMCA, Tariffs and Statistics” , Alberto Bustamante , president of the National Agency of Suppliers of the Automotive Sector (Anapsa) , outlined a scenario in which US tariff pressure, the tightening of trade rules and, at the same time, a window of opportunity to consolidate Mexico as a global power converge.

The starting point was that Mexico is no longer a secondary player . With exports to more than 100 countries and a production of around 4.2 million vehicles per year, the country has consolidated its position as the second largest manufacturer in North America, surpassing Canada, whose market share has been steadily declining.

For Bustamante, this change is not a coincidence, but the direct result of trade integration since 1994.

“The only winner has been Mexico,” he stated.

However, the sector’s importance is not limited to production volume. The automotive industry accounts for approximately 22% of the country’s manufacturing employment and has built a supply network that provides over 900,000 direct jobs in auto parts.

This ecosystem not only supports the assembly plants, but also multiplies the economic impact, so that for every job in an assembly plant, multiple positions are generated in the supply chain.

The true weight of the sector is reflected in its trade balance. With a surplus of nearly $108 billion , the automotive industry surpasses, even combined, industries such as remittances, tourism, and oil.

This strength is largely explained by Mexico’s strategic role as a supplier of auto parts to the United States. Today, 43% of U.S. imports in this sector come from Mexico , an advantage that places the country well ahead of other partners like Canada.

This interdependence has generated a stark reality: no internal combustion engine vehicle in the United States can be manufactured without Mexican components.

Each unit produced in that country incorporates, on average, more than $10,000 worth of auto parts from Mexico .  But this very importance is what has placed the sector at the center of the trade dispute.

Heading towards the USMCA review

Ahead of the trade agreement review, the United States is seeking to tighten the rules of the game. The proposal includes raising the regional content requirement for vehicles from 75% to 85% , requiring that at least half of the components come directly from U.S. territory, and strengthening labor provisions.

This is in addition to a broader strategy aimed at reducing dependence on Asia, particularly China.

Meanwhile, the tariff environment has become more aggressive. Although the USMCA allows for exports with preferential rates, various measures implemented by Washington have resulted in tariffs of up to 25% for certain vehicles and components, especially those with high steel, aluminum, or copper content.

“The automotive sector is in the eye of the storm,” Bustamante warned.

Mexico, for its part, has begun to take measures following the same geopolitical logic. The imposition of tariffs of up to 50% on products from countries without trade agreements , particularly China, seeks to strengthen regional integration.

However, the industry has expressed concerns when these measures affect essential raw materials for manufacturing, such as plastic, which could increase the cost of local production.

In this context, the upcoming review of the USMCA, which will formally begin in July, is shaping up to be a turning point. Anapsa is calling for ensuring conditions of certainty and protecting the sector from unilateral measures.

Among the proposals, the signing of parallel agreements to protect the automotive industry from new tariffs stands out, as well as the strengthening of the rule of law and security, factors that directly affect competitiveness.

Despite the adverse environment, the diagnosis is not pessimistic; on the contrary, Bustamante anticipated that Mexico is heading towards a new stage of expansion.

In the coming years, the country could position itself as the world’s fourth largest producer of light vehicles and the third largest in auto parts, driven by greater regional integration and new investments, many of which, he assured, are already taking place, although with less public visibility.

“Turbulent times are coming,” he acknowledged.

But he also made it clear that the sector has built a solid enough foundation not only to withstand the strain, but to grow.

The Mexican automotive industry, which took more than two decades to consolidate, now faces its next big test: adapting to a more restrictive environment without losing its place as one of the country’s economic pillars and an indispensable partner for North America.

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Vehicle production in Mexico totaled 343,520 units in March 2026, representing a 2.5% increase compared to the same month in 2025, when 335,065 cars were manufactured, the National Institute of Statistics and Geography (Inegi) reported this Thursday .

In turn, in the period January-March 2026,  969,294 cars were manufactured , a growth of 0.5% compared to the same cycle of the previous year, according to the Administrative Registry of the Automotive Industry of Light Vehicles (RAIAVL).

In total,  light trucks accounted for 80%  of the total produced , with 775,717 units; the remainder corresponded to automobiles.

In the first quarter, the brands that stood out in their production in Mexican plants were Volkswagen with an increase of 53.8%, adding 99,706 units compared to 64,830 in the same cycle of 2025.

Honda also showed good results in terms of its manufacturing with an increase of 12.7% in the January-March period of 2026, totaling 45,555 units over the 40,404 vehicles produced in the same period last year.

Similarly,  KIA recorded positive figures in its production with an increase of 11.3%, adding 76,300 units in the first quarter of the year compared to the same cycle in 2025, when it manufactured 68,560 vehicles.

Exports accelerate

Exports also registered positive figures during March 2026. In this regard,  the shipment abroad of light vehicles manufactured in Mexico was 310,205 units, which meant a growth of 4.2%  compared to the same month of 2025.

Meanwhile, 795,631 vehicles were exported between January and March of this year, a 2.5% increase compared to the same period last year. The United States was the main destination for light vehicle exports, accounting for 75.8%, or 602,887 units. Canada followed  with 97,801 vehicles, representing 12.3% of exports.

Among the brands that registered the highest exports during the first quarter were Volkswagen, with a 70.7% increase compared to the same period in 2015, totaling 81,535 units. Kia also saw a significant increase, with 13%, shipping 58,679 vehicles abroad. General Motors showed a 4.7% increase, totaling 195,214 exported units.

With these results, the Mexican automotive industry is beginning to show signs of recovery after a challenging 2025, framed by a complicated trade environment with tariff increases and restrictive measures by the United States.

Despite this, the United States remains the main buyer of cars manufactured in Mexico , with Canada in second place, reflecting the trade integration between the three countries that make up the United States-Mexico-Canada Agreement (USMCA) .

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In March 2026, new vehicle sales in the Mexican market totaled 131,548 units, representing a 2.4% increase compared to the same month in 2025, when 128,434 cars were sold in the country, according to data from the National Institute of Statistics and Geography (Inegi) .

The first quarter of the year also showed a positive trend, with the sale of 381,632 vehicles, an increase of 3.7% compared to the same period in 2025, in which 367,989 units were sold.

The cumulative figure represented the best result for a January-March period in the last nine years, according to statistics from the Administrative Registry of the Automotive Industry of Light Vehicles (RAIAVL) .

According to the Mexican Association of Automotive Distributors (AMDA)  and the  Mexican Automotive Industry Association (AMIA) , the brands that stood out in vehicle sales during the January-March 2026 cycle were  Nissan  with a 17.6% share,  General Motors  with 13.2%,  Volkswagen  with 11.1%,  Toyota with 7.8% and  KIA  with 7.2 percent.

In the third month of the year, Mitsubishi  reported a 37.4% increase in its sales compared to March 2025, Hyundai advanced 10.6%, Volkswagen accelerated 3.7% and Ford  increased 2.2 percent.

Chinese brands ,  which continue to gain ground in the Mexican market, showed mixed performance during the period. JAC  increased its sales by 1.2% in March 2026 compared to the same month in 2025,  MG Motor  saw a 28.6% increase, Foton experienced a 0.9% decrease, and Changan rose by 57.6%.

March’s vehicle sales figures showed a rebound in annual sales, after having suffered a 0.3% drop last February.

The positive performance of the national automotive industry in the third month of the year could signify a slight recovery in the Mexican economy.

It also reflects the strength of this sector in a volatile environment framed by tariff uncertainty and the constant change of trade policies in the world.

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