The regional automotive industry is going through a scenario of contrasts, according to Gerardo Gómez , Country Manager Director Mexico of JD Power , who during the Fleet Latam Summit 2025 explained that, despite the fact that Mexico reached a historic production of close to four million light vehicles in 2024 , today the plants operate at 70% of their installed capacity , with 80% of that production directed to the United States.
The specialist emphasized that more than 30 Chinese light vehicle brands have entered the Mexican market in the last four years , making the country a sort of incubator for testing local consumer acceptance.
However, he predicted that in the next three or four years, half of these brands will disappear or merge, in a natural process of market purification.
Regarding the global outlook, Gómez noted that sales fell in 2020 and that, despite the recovery, the industry has yet to reach the goal of 100 million light vehicles sold and produced annually, a milestone now projected to end in 2036.
The uncertainty generated by tariffs and trade tensions is keeping production at tight levels, he said.
Gómez emphasized that Mexico and Brazil currently account for 86% of the seven million light vehicles produced in Latin America, and by 2032, they are expected to account for up to 90% of regional production.
While Mexico is consolidating its position as an exporting country, Brazil stands out for manufacturing practically everything it consumes, with around 2.5 million units.
Regarding hybrid and electric vehicles , he highlighted that globally, 40% of sales in 2025 will be based on this technology, and that by 2030, the proportion will grow to six out of every 10 units.
However, JD Power’s projection for Latin America is that adoption will be more gradual: one in five vehicles by 2030. “Hybrids will be the natural next step, as the electrical infrastructure consolidates,” Gómez emphasized.
When addressing the light used vehicle market , he noted that in Mexico, only 2% of purchases were made entirely digitally, compared to the 45 million used units sold each year in the United States. The lack of reliable and trustworthy records in digital channels limits growth in this segment, although it also represents an area of opportunity for the future.
Comment and follow us on X: @karinaquintero / @GrupoT21
