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Light vehicle production in Mexico increases, but exports fall in January

T21 Media — Mon, 10 Feb 2025 23:21:12 +0000

During January 2025, 312,257 units were manufactured in Mexico , which meant an increase of 1.7% compared to the same month in 2024, according to what the National Institute of Statistics and Geography (Inegi) announced this Monday .

Adriana Ramírez , manager of Economic Studies for the Mexican Association of the Automotive Industry (AMIA) , stressed in a press conference that the production by segment was 50.6% SUVs. This was followed by pickups with 23% , compacts with 19.4% , subcompacts with 3.7% , luxury with 3.1% , and minivans with 0.2 percent .

According to information from the Administrative Registry of the Light Vehicle Automotive Industry (RAIAVL) of Inegi, at the end of the first month of this year, light trucks represented 73.8% of production with 230,383 units .

Meanwhile, automobile manufacturing accumulated 26.2% in that period with 81,874 units.

With an increase of 243.1% in January 2025, Toyota stood out in its national production compared to the same month in 2024, while KIA reported an increase of 53.8% in that period and Mazda of 9.4 percent .

Vehicle exports fall in January

Inegi also announced that the export of light vehicles manufactured in Mexico was 219,414 units , which represented a drop of 13.7% in January 2025 compared to the same month in 2024, when 254,367 vehicles were sent abroad .

The United States was the main destination for light vehicle exports, with 83.6% (183,321 units) , followed by Canada with 21,707 cars, which accounted for 9.9% and Germany with 4,030 units, which represented 1.8% of shipments abroad.

“The great relevance and importance of the US market is highlighted, since 83.6% of exports have been directed to our northern neighbor since 2020. The United States market share had not exceeded 83%, and the top three countries to which we export represent 95.3%, which are the United States, Canada, and Germany,” Adriana Ramírez highlighted.

The brands that registered the highest exports in the first month of this year were Toyota , with an increase of 324.5% over the same period last year. KIA followed with an increase of 23.1% , and Ford with an increase of 4.7% in its shipments abroad in that month, according to figures from Inegi.

By segment, Ramírez indicated that SUVs were the units that were exported the most with 55.1% , followed by pickups with 25% , compacts with 17.1% , luxury with 1.5% and subcompacts with 0.7 percent .

Regarding sales in the domestic market, the sector reached 119,811 new units in the first month of 2025, which represented an increase of 5.9% compared to the same month last year.

“According to official data collected by Inegi, January 2025 is the year in which we are in third place, behind only 2017 with a difference of 2.9% and practically at the same level as 2016,” said Guillermo Rosales, executive president of the Mexican Association of Automobile Distributors (AMDA) .

At a press conference, he said that, although there is a recovery in the industry, expectations for 2025 are moderate. In an optimistic scenario in which the Gross Domestic Product (GDP) grows 1.1% , AMDA expects the sale of 1,530,029 units .

In a second scenario, in which an economic contraction of 1% is foreseen , sales could fall to 1,482,734 units .

“Month by month, expectations for the Mexican economy have been declining, mainly due to the order of the relationship between the United States and Mexico, but we are also already experiencing a dynamic of deceleration that began towards the end of 2023,” Rosales said.

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Automotive Industry Presents Joint Proposal to Presidential Candidates

T21 Media — Wed, 22 May 2024 00:42:37 +0000

With the aim of emphasizing the importance of the Mexican automotive industry, both heavy and light vehicles, and to share proposals for the generation of public policies benefiting the productive sectors, the leading associations of the national industry presented the document “Dialogue with the Automotive Industry 2024: Driving Towards a Sustainable Future” to the presidential candidates.

During the official presentation of the document, Guillermo Rosales, Executive President of the Mexican Association of Automotive Dealers (AMDA), highlighted the importance of working together with the next President of the Republic from the moment the government transition begins. He assured that the industry remains committed to continuing to invest in the country.

Odracir Barquera, General Director of the Mexican Association of the Automotive Industry (AMIA), emphasized that the next head of state will face events that could transform the country’s direction.

“They will oversee the final stage of the great opportunity for the relocation of global value chains and ensure that Mexico capitalizes on it successfully. They will also review the USMCA in 2026 and ensure that its conditions and advantages are maintained or even improved, in addition to completing the 2030 Agenda for sustainable development goals and securing the best possible outcomes,” stated Barquera.

He detailed that the next president will be responsible for driving Mexico in the global race towards new technologies. In this regard, he affirmed that electromobility represents the most significant real opportunity for attracting investment in the coming decades in Mexico, beyond the temporary phenomenon of relocation.

Virginia Olalde Lopez-Gavito, Director of Foreign Trade and Economic Studies of the National Association of Bus, Truck, and Tractor Producers (ANPACT), stated that the proposals, strategies, and priority issues presented by the automotive sector to the presidential candidates are essential for maintaining Mexico’s global leadership in the production and export of buses, trucks, and tractors, while also boosting the domestic market.

“The document highlights the high integration of the automotive industry in the North American region, based on the USMCA, a legal instrument that guarantees regulatory certainty. North America is one of the key pillars for the automotive industry. ‘Made in North America’ means competitiveness, economic integration, technology, quality, and development, where Mexico plays a leading role. Therefore, for the heavy vehicle industry, it is important to maintain and enhance current trade agreements such as the USMCA, the Pacific Alliance, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), among others,” detailed the ANPACT representative.

Olalde Lopez-Gavito emphasized that addressing public security is crucial since strengthening this area will enhance opportunities for Mexico, in light of growth related to nearshoring.

Armando Cortés, General Director of the National Auto Parts Industry (INA), stated that the sector he represents is committed to the environment, technology, and electromobility. Consequently, INA will promote high-tech components such as batteries and semiconductors during the next six-year term.

“The foundations have already been laid, and we believe that the next administration will be very interested in continuing to promote these issues for the benefit of Mexicans. With this document, we request closer collaboration between the private sector and the government, from a regional perspective involving auto parts companies on both sides of the border. It is important to maintain a permanent dialogue with the United States,” affirmed the INA representative.

Finally, Guillermo Rosales emphasized that the automotive sector is key to the country’s economic and social development, also highlighting Mexico’s strategic global position in the industry. “We can have a better future only through dialogue and effective collaboration between the industry, society, and the government, with which we seek to restore constructive dialogue,” he assured.

Rosales pointed out that there is a significant challenge to meet the potential demand of the automotive market in Mexico. He also highlighted that the sector faces one of the highest regulatory burdens and that each year it responds to an increasing bureaucratic load and regulatory compliance, making it vulnerable to acts of corruption.

“It is imperative to establish an administrative revolution… for example, the reconstruction of a national vehicle control system to replace the inoperative Public Vehicle Registry (Repuve),” clarified the AMDA representative.

Another example is adjusting the money laundering prevention system that puts automotive dealers’ businesses at risk. Rosales also stated that it is urgent to update the tax framework so that the sale of new vehicles is no longer seen by governments as a revenue generator but as an opportunity for renewal, favoring cleaner vehicles for the decarbonization of mobility.

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