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.

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In March 2025,  338,669 light vehicles were manufactured in Mexico , which represented an increase of 12.1% compared to the same month in 2024, according to figures from the  National Institute of Statistics and Geography (INEGI) .

According to information from the  Administrative Registry of the Light Vehicle Automotive Industry (RAIAVL) , 973,485 cars were manufactured in the country between January and March 2025 , representing a 4.8% increase compared to the same period last year.

Of the total manufactured in the first quarter of the year, light trucks represented  76.1% , with  740,931 units , while the remainder corresponded to automobile manufacturing, with  232,554 automobiles .

During the period,  Toyota  excelled in its domestic production, with a  116% increase  to 78,464 units  compared to  36,330  in the same cycle in 2024.

KIA  also showed good results in terms of its manufacturing, with a  24.1% increase  in the first quarter of 2025 with  68,560 units  compared to the  55,250  cars produced in the same period last year.

Ford  recorded an increase in its production during that period, with an increase of 14.4% , reaching 102,732 units .

Exports on the rise

INEGI also announced that the export of light vehicles manufactured in Mexico during March 2025 amounted to 296,964 units , representing an annual increase of 3.8% .

However, in the first quarter of this year, shipments abroad showed a decrease of 6.04% , with 775,866 vehicles exported , compared to 825,707 vehicles in the same period in 2024.

In the period January-March 2025, the United States  was the main destination for light vehicle exports, with  83% reaching 643,894 units , followed by  Canada  with  67,080  cars , which represented  8.6%  of shipments abroad.

Among the brands that registered the highest exports in the first quarter of this year were Toyota, with a  120% increase  over the same period in 2024. KIA followed with a  22.9% increase , and Ford with a 9.3% increase .

According to data from INEGI (National Institute of Statistics and Census), vehicle exports increased in the third quarter of the year, with the United States becoming the main buyer of cars manufactured in Mexico. This is despite the fact that Donald Trump , president of Mexico, has reiterated that he does not want cars manufactured in Mexico or Canada in the United States.

The increase in vehicle shipments to that country also comes after Trump imposed 25% tariffs on April 3 on cars entering the United States from several countries around the world, including Mexico, one of its main North American trading partners.

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AGUASCALIENTES, AGS. – Nissan Mexicana began production of the Nissan Kicks 2025 , with an investment of 700 million dollars, aimed at strengthening, among other things, its export capacity . This investment promotes the integration of new technologies and processes for the competitiveness of the automotive company in global markets.

In this context, Rodrigo Centeno, President and CEO of Nissan Mexico, highlighted the importance of the project.

“The Nissan Kicks 2025 is a strategic model for the company, not only because of its success in the local market, but because it will be exported to more than 70 countries, including the United States and Canada. This production consolidates Mexico as one of the main manufacturing centers for the brand,” Centeno said.

In this sense, the Aguascalientes plant is responsible for producing around 200 thousand units annually , with 34 units assembled per hour , which reinforces the relevance of Mexico in Nissan’s global supply chain.

“Our production capacity allows us to meet the demand of our key markets, while maintaining the quality standards that distinguish Nissan,” Centeno said.

Around 45% of the units produced in Aguascalientes are exported to the United States, while 6% are destined for Canada . The brand’s high production also generates 20,000 direct jobs in its plants and a network of 100,000 families that depend on the automotive sector in Mexico.

In addition, Nissan plans to incorporate its e-Power technology, a hybrid option, into more units in the near future . Although the Kicks 2025 will initially maintain its traditional engine, this evolution represents a step towards the progressive electrification of Nissan’s fleet in Mexico.

Despite political uncertainties on the global and local scene , Centeno also expressed confidence in the future of the automaker in Mexico:

“Nissan’s commitment to Mexico is strong and long-term. We have witnessed political and economic changes throughout our history in Mexico, but our focus has always been on offering products that respond to market needs and staying at the forefront of technology,” Centeno said.

The company also said it will continue to expand its production capacity as market demands grow and will play a key role in the nearshoring strategy, taking advantage of the geographic and logistical advantages that Mexico offers to supply vehicles to its markets in North America and Latin America.

Since the beginning of its operations in the country, Nissan has produced more than 16 million units in Mexico.

“We are very proud of this achievement. Mexico is a key part of our global manufacturing network, and we will continue to invest in infrastructure and technology to maintain this leadership position,” Centeno said.

For the brand’s executives, the Nissan Kicks 2025 seeks to be a benchmark in the SUV segment that marks the beginning of a new stage for the automaker, in which they seek to “combine technological innovation, manufacturing efficiency and a strong commitment to sustainability . “

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The Ford Stamping and Assembly Plant in Hermosillo, Sonora, reached a significant milestone by producing its seven millionth unit, the automotive company announced in a statement.

On June 7, 2024, a blue Ford Bronco Sport became the seven millionth unit produced by this industrial complex. Eduardo Villegas, the stamping and assembly manager at Ford Hermosillo, highlighted the commitment of over 3,500 employees.

“This achievement is a source of pride for our plant and the entire Hermosillo community. Every vehicle that leaves here carries the spirit and dedication of our people. From Hermosillo, we have conquered roads around the world with products of the highest quality. Thanks to everyone for making this possible,” said Eduardo Villegas.

This plant began its operation producing sedans such as the Ford Mercury Tracer, Escort, and Escort Coupé. Over time, it expanded its production to include models like the Ford Focus, Fusion, and luxury Lincoln models, becoming the first in Mexico, for the brand, to manufacture hybrid vehicles.

Ricardo Anaya, the company’s manufacturing director, said, “today, with seven million units produced, we are proud to be the home of two of the brand’s most iconic vehicles worldwide that are identified with the Sonoran spirit, characterized by accepting any challenge regardless of its magnitude.”

Additionally, in 2004, a 122-hectare supplier campus was added with 17 suppliers sending 46% of the materials used in the plant. It also operates a flexible manufacturing system that allows the production of various models on the same assembly line. This system includes:

Stamping: Cutting sheet metal to produce parts.
Body: Joining metal sheets, with the capacity for multiple models on one platform.
Paint: Ability to handle multiple cars instead of the traditional method.
Final Assembly: Common configuration of workstations and adaptable standard equipment.

Similarly, one of the brand’s commitments is to reduce its carbon footprint by using 100% treated water in its processes and installing solar panels, significantly reducing electricity consumption.

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April 2024 breaks the streak of negative figures in the production and export of light vehicles in a similar month, as it recorded growth for the first time since 2005.

In the reference month, plants located in Mexico manufactured 358,575 units, which corresponded to a 21.7% increase compared to the same month last year.

“This April is the strongest since 2005 when the Administrative Registry of the Automotive Industry of Light Vehicles (RAIAVL) began in collaboration with the National Institute of Statistics and Geography (INEGI),” detailed Adriana Ramírez, Manager of Economic Studies at the Mexican Automotive Industry Association (AMIA) in a press conference.

At the same time, in the cumulative period from January to April of the current year, a total of 1,286,356 units were produced, representing an increase of 5.7% compared to the same period in 2023.

Ramírez indicated that production by segment behaved positively in the first four months of the year. SUVs represented 46.9% of total production with 603,628 units, followed by pickups with 363,843 units, which accounted for 28.3% of national manufacturing, followed by compact cars with 18.8%, a percentage equivalent to 242,368 units.

The fourth, fifth, and sixth places were occupied by subcompact cars with 41,901 units, luxury cars with 33,076, and minivans with 1,540 units, respectively.

It is worth noting that since October 2023, Mexico has been producing two models of electric vehicles. In this context, in the cumulative period from January to April 2024, 25,701 units have been manufactured.

The representative of AMIA reported that the plant capacity utilized in the country was 89.2% during the first two months of the year. “This was higher than pre-pandemic and post-pandemic levels, highlighting an improvement in the assembly plants in our country.”

Regarding exports, April 2024 was the strongest month since 2005, with 289,756 units sent to trading partners, representing a 14.4% increase compared to April 2023.

In the cumulative period of the first four months of the year, export growth was 12.1% compared to the same period in 2023, with a total of 1,115,455 units.

By segment, SUVs led the shipments to Mexico’s trading partners with a total of 542,865 units, corresponding to 48.7 percent. In second place were pickup trucks with 328,001 units, representing 29.4% of exports.

In third place, compact cars were parked with 205,938 vehicles, accounting for 18.5 percent. In fourth and fifth place were luxury vehicles with 30,916 units and subcompacts with 7,735, respectively.

During the first four months of the year, the main destinations for vehicles made in Mexico were: the United States with 901,914 vehicles, which accounted for 80.9% of exports. Canada ranked second with 81,909 units, and Germany took third place with 33,540 vehicles.

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