Mexico’s automotive industry produced 311,457 light vehicles in February 2026, a 1.8% decrease compared with the same month in 2025. Exports totaled 247,945 units, representing a 4.4% year-over-year decline, according to data from the Administrative Registry of the Light Vehicle Automotive Industry (RAIAVL) released by INEGI. Despite the monthly contraction, cumulative export performance during the first two months of the year remained positive, reflecting steady international demand for vehicles assembled in Mexico.

During the January–February period, total vehicle production reached 625,774 units, representing a modest 0.6% decrease compared with the same period in 2025. Over the same timeframe, exports increased 1.4% to 485,426 vehicles. The divergence between production and export trends suggests that manufacturers adjusted output levels while maintaining a strong focus on international shipments. For global automakers operating in Mexico, the early months of 2026 highlight both operational flexibility and the resilience of export-driven manufacturing strategies.

The United States remained the primary destination for vehicles produced in Mexico. During the first two months of the year, shipments to the United States accounted for 75.7% of total light-vehicle exports. This concentration reflects the deep integration of manufacturing supply chains across North America, where components and finished vehicles move frequently across borders. The reliance on the US market also underscores the importance of stable trade relations for Mexico’s automotive sector.

Production data for February shows that several major automakers continued to lead assembly volumes in the country. General Motors recorded the highest output during the month, with 69,652 vehicles produced. Stellantis followed with 40,865 units, while Nissan produced 40,214 vehicles. Additional production volumes were reported by Ford Motor Company with 31,508 vehicles and Volkswagen with 30,032 units.

Export activity during February reflected the strong participation of these manufacturers in Mexico’s automotive trade flows. General Motors led exports with 57,473 vehicles shipped abroad. Stellantis exported 30,401 units, followed by Ford Motor Company with 28,958 vehicles and Nissan with 27,800 vehicles. Toyota completed the top five exporters with 26,190 units sent to international markets.

Chinese Brands Accelerate Expansion in the Mexican Market

Alongside manufacturing activity, Mexico’s automotive market continues to experience structural changes as new international brands expand their presence. Chinese automakers have continued gaining market share despite the implementation of higher import tariffs earlier this year. Data from INEGI show that Chinese brands sold 14,978 vehicles in January 2026, representing 11.3% of the Mexican automotive market. The figure excludes sales from BYD, which does not report monthly results, and Chirey, which did not submit data for the period.

According to INEGI, two additional brands—Zeekr and Lynk & Co—were incorporated into the agency’s official reporting system beginning in January 2026. Both brands belong to Geely Holding Group and together reported sales of 304 vehicles in February, a volume comparable to that recorded by Volvo during the same month. Other new entrants have also demonstrated strong growth. Geely increased sales by 249% year over year in February, while Jetour and Soueast recorded a combined sales increase of 775%.

Compared with January 2025, when Chinese brands sold 11,627 vehicles, sales increased by nearly 29%. Industry analysts note that more than 20 Chinese automotive brands now operate in Mexico.

Trade Policy and Market Dynamics Shape Industry Outlook

Trade policy developments are also influencing the outlook for the automotive sector. Mexico’s position ahead of the 2026 review of the United States–Mexico–Canada Agreement (USMCA) has strengthened following recent limits imposed by the Supreme Court of the United States on the executive branch’s ability to enact tariffs under the International Emergency Economic Powers Act. The ruling reduces the likelihood of unilateral tariffs that could disrupt cross-border automotive supply chains.

According to Mónica Lugo, director of institutional relations, Prodensa and a former USMCA negotiator, the decision narrows the possibility of a broad renegotiation driven exclusively by the executive branch. Lugo noted that if Donald Trump sought to pursue major revisionsto the agreement, special authorization from United States Congress would likely be required. The ruling, she said, demonstrates the institutional checks and balances within the US political system, which could provide Mexico with greater leverage during future negotiations.

The legal framework governing trade negotiations further complicates potential revisions to the agreement. The Trade Promotion Authority previously allowed Congress to delegate negotiating authority to the executive branch, but that authority expired in 2021. Kenneth Smith Ramos explained that significant modifications to rules of origin, investment provisions or dispute resolution mechanisms would likely require congressional approval.

Domestic market performance also provides context for the industry’s broader trajectory. Light-vehicle sales in Mexico reached 118,297 units in February, a slight 0.3% decline compared with the same month in 2025 and 10.2% lower than January’s total of 131,779 vehicles, according to the Asociación Mexicana de Distribuidores de Automotores (AMDA). The month-to-month drop represented 13,482 fewer vehicles sold.