Mexico’s heavy vehicle industry has endorsed a federal program to renew the national fleet, with up to MX$6 billion (US$340 million) in incentives and financing, aimed at reducing emissions, improving road safety, and supporting domestic production. The initiative was presented by Claudia Sheinbaum and Economy Minister Marcelo Ebrard, and has received backing from key industry groups led by the National Association of Producers of Buses, Trucks and Tractor-trailers (ANPACT). The program targets a sector that accounts for more than 80% of goods transported nationwide.

Industry representatives said the program addresses structural gaps in fleet modernization and supply chain efficiency. “Programs like the one announced today send a positive signal to the industrial sector by incentivizing fleet renewal, strengthening supply chains, and expanding access to financing,” said Alejandro Malagón, president of the Confederation of Industrial Chambers of the United Mexican States. The initiative also seeks to boost domestic manufacturing and sustain employment across the heavy vehicle value chain.

Rogelio Arzate, executive president, ANPACT, said the measures support competitiveness and logistics performance. “The set of measures represents a positive signal for fleet modernization, the strengthening of the national production base, and the creation of more competitive conditions for freight transport,” he said. He added that freight transport remains a strategic pillar of the economy, given its role in moving goods and people across the country.

Financing and Incentive Structure

The program includes MX$2 billion (US$110.4 million) allocated to accelerated depreciation schemes, designed to incentivize the purchase of new buses and trucks manufactured in Mexico. Authorities expect this mechanism to replace aging units and accelerate the adoption of cleaner and safer technologies, generating operational efficiencies while reducing environmental impact.

Ebrard said the financial structure combines direct fiscal incentives and credit expansion mechanisms. “We are starting with MX$2 billion in direct deductibility and MX$250 million (US$13.8 million) from Nacional Financiera, which we estimate will be leveraged up to 16 times, reaching approximately MX$4 billion (US$221 million). Combined, this totals around MX$6 billion (US$331 million) to accelerate fleet renewal,” he said. The plan also involves closer coordination with development banking institutions to expand access to credit.

The program seeks to protect employment and income across the sector. “The objective is to protect jobs and the income of thousands of Mexican families. This industry involves around 200,000 workers,” Ebrard said. He added that improving driver safety conditions and reducing emissions are central priorities, as older technologies continue to generate higher levels of pollution.

Industry Alignment and Regulatory Measures

The initiative includes measures to tighten regulation of used heavy vehicle imports, particularly from the United States. Authorities plan to establish reference pricing mechanisms to determine customs values and prevent undervaluation practices. Industry groups say these measures will help stabilize the domestic secondary market and support small and medium-sized transport operators.

Arzate said fleet renewal is urgent given current conditions. “Modernizing the fleet, which has an average age of 19 years, is a pressing need,” he said. He also noted that Mexico already produces vehicles with advanced technologies, including electric, natural gas, and hybrid systems, as well as Euro VI diesel units capable of reducing emissions by up to 90% compared with older standards.

The program also advances regulatory efforts to update vehicle safety standards. Industry participants are working with authorities to modernize technical requirements for heavy vehicles operating on national highways, aiming to improve safety outcomes and align Mexico with international standards.

Strategic Impact on Logistics and Production

President Sheinbaum said the program forms part of a broader industrial and environmental strategy. “This is a very important program that will help us reduce pollutants, improve freight transport conditions, increase vehicle production in Mexico, and expand the domestic supply chain,” she said. 

Mexico’s heavy vehicle industry entered 2026 under pressure after the United States imposed a 25% tariff on Mexican truck exports,  triggering a sharp contraction in production, exports, and employment. Industry data show declines of more than 50% in key indicators, marking one of the steepest downturns in over a decade. 

According to INEGI, heavy truck production fell 52% year over year in January to 6,793 units, while exports declined 53.8% to 5,076 units. Industry groups said these were the lowest January figures in at least 16 years, representing the first full month under the new tariff regime. Domestic demand also weakened, with wholesale sales dropping 36% to 1,676 units and retail sales falling 46.3% to 2,073 units, pointing to a synchronized contraction across the sector.

The downturn has translated into job losses and operational adjustments. Alejandro Osorio of ANPACT said approximately 6,000 manufacturing jobs—around 20% of the workforce—have been lost as the contraction extended from 2025 into early 2026. Plants integrated into North American supply chains have been particularly affected. “The outlook for the heavy vehicle industry is extremely negative,” said Guillermo Rosales, president, AMDA, attributing the decline to tariffs and increased imports of used trucks.

Industry groups warn that imports of used heavy vehicles from the United States are intensifying competitive pressure. Vehicles between eight and 10 years old currently enter Mexico with a 10% tariff, and associations are proposing raising this rate to 50% to protect domestic production. Rosales said the influx of lower-priced units is displacing demand for locally manufactured trucks. He added that macroeconomic variables alone do not explain the scale of the downturn, describing 2025 as comparable only to the disruption caused by the COVID-19 pandemic.

The sector’s reliance on exports to the United States has amplified the impact of the tariff measures. More than 90% of Mexico’s heavy truck production is exported to the U.S., making the industry highly exposed to policy changes. While ANPACT noted compliance with United States-Mexico-Canada Agreement (USMCA) rules of origin, the additional 25% duty represents a significant competitiveness shock.