In light of the imposition of 25% tariffs on imported vehicles manufactured in Mexico by the United States, public policies must be adjusted to consolidate the domestic market with more affordable options, said Guillermo Rosales Zárate , executive president of the Mexican Association of Automobile Dealers (AMDA) .
“This isn’t about abandoning the high-quality manufacturing and export profile, but rather about satisfying domestic demand for vehicles with more affordable options that meet the needs of a much broader population,” Rosales emphasized.
During the presentation of the book Automotive Industry in Mexico: History of the production, distribution and export of vehicles in the Chamber of Deputies , he specified that clear rules and incentives for local purchasing and production are required to boost domestic consumption of automobiles, because 80 % of the manufacturing in this industry is exported and of this percentage, 70% is sent to the United States.
In his speech, he supported the negotiations being conducted by President Claudia Sheinbaum ‘s government regarding the tariffs announced by Donald Trump , the president of the country’s northern neighbor.
The AMDA executive president invited legislators to continue discussing the tax revenue collected by the automotive industry, suggesting that adjusting it could help boost the domestic market.
“Since 2008, the deduction for new vehicles has been capped at 175,000 pesos over five fiscal years; with this year’s update, the amount should be 450,000 pesos,” he recalled.
Rosales believed it would be beneficial to implement this tax break in the Mexico Plan, which Sheinbaum is promoting as part of the country’s shift in export profile toward Made in Mexico.
In the sense of boosting the domestic market, he recalled the case of Brazil, a country that closed the first quarter of 2025 with a production of half a million units with a very similar local sale , while in the same period Mexico produced more than 973 thousand units , of which it exported 80% (776 thousand vehicles) and, the domestic market, even with good sales results in the reference period, was barely more than 370 thousand vehicles .
“What does this tell us? That Brazil, with a market and population almost double that of Mexico, has a production that barely reaches half of ours. Why? Because in Brazil, almost 80% of its production is for the domestic market, and the little it exports goes to the rest of Latin America. Very little of Brazilian production is sent to the most demanding markets, where Mexican vehicles have a reputation for the best quality in the world,” he emphasized.
Along these lines, he called on President Sheinbaum to end the regulation of automobile smuggling as another measure to improve the domestic market. He noted that through this measure, more than three million foreign units have been legalized so far.
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