This week, automakers warned of USMCA risks to affordable cars while BYD’s profits plunged amid an aggressive EV price war. Despite cooling capital flows, Mexico’s auto sector drew US$2.1 billion, fueled by Bosch’s growth and Tesla’s Cybercab production. Meanwhile, Uber scales tech for the 2026 World Cup, and Porsche exits Bugatti Rimac to realign its strategic portfolio.

Drivers, eyes on the flagman– This week in automotive!

BYD Profit Drops 55% as EV Price War Hits Margins

BYD reported a 55% year-over-year decline in net income for 1Q26, as intensifying price competition in China’s electric vehicle market compressed margins and weighed on financial performance. Net income fell to US$597 million for the January–March period, marking the fourth consecutive quarterly decline. Revenue decreased 12%, reflecting sustained pricing pressure and softer domestic demand.

Predictability in Mexico Manufacturing: The Role of Digital Data

Smart manufacturing is simply about bringing that information together and making it usable at the right time. It is the difference between knowing how to make a part and being able to say: “We can make this part the same way every time, no matter who is on shift.” 

Nissan, Toyota, Hyundai Warn on USMCA Low-Cost Car Risk

Foreign automakers have issued a formal warning to the administration of Donald Trump, stating they may withdraw their most affordable vehicle models from the US market if the United States-Mexico-Canada Agreement is not renewed or is significantly weakened during its upcoming review.

Porsche to Sell Bugatti Rimac Stake to HOF Capital

Porsche  has agreed to sell its stake in the Bugatti Rimac joint venture to a consortium led by HOF Capital, marking a broader portfolio adjustment as the automotive industry navigates structural and technological shifts. The transaction includes Porsche’s full exit from its 45% stake in Bugatti Rimac, as well as its 20.6% holding in Rimac Group, according to company statements released Friday.

Giant Motors Latinoamérica Wins Overseas Plant Award

Giant Motors Latinoamérica (GML) received the award for the best overseas assembly plant during the 2026 JAC Global Partners Conference, signaling a shift in the strategic importance of its Ciudad Sahagun, Hidalgo facility. Following the recognition, company executives announced that the entire 2027 model year portfolio will carry the official “Hecho en México” (Made in Mexico) distinction to address shifting consumer preferences in an increasingly competitive automotive market. 

Mexico’s Automotive Evolution: From Assembly to EV Specialization

The narrative is no longer focused solely on how many vehicles are produced, but rather on how, for whom, and under what global logic they are manufactured. This reconfiguration is driven by new geopolitical, technological, and commercial pressures that are reshaping Mexico’s position within the global automotive value chain.

Mexico Auto Sector Draws US$2.1 Billion, Shifts to Tech Projects

Mexico’s automotive sector attracted US$2.17 billion in investment in 1Q26, signaling a shift toward technology-driven and regionally aligned projects despite a decline in overall capital flows. According to the Reporte de Inversión Automotriz 1T 2026, presented by Cluster Industrial, the sector recorded 54 investment projects from 11 countries between January and March, representing a 15.6% decrease compared with the same period in 2025.

Bosch Reports MX$84.5 Billion Sales; Mexico Grows 10.6%

Bosch Mexico concluded its 2025 fiscal year with total global net sales of MX$84.5 billion, of which Mexico contributed MX$4.4 billion, representing a 10.6% year-over-year increase. The company attributed this performance to its role as a strategic manufacturing hub for North America, with 90% of its sales derived from the manufacturing segment.

Tesla Advances Autonomous Push with Cybercab Production

Tesla has officially begun manufacturing its purpose-built Cybercab robotaxi at Gigafactory Texas, marking a strategic pivot toward a driverless business model even as the company acknowledges that millions of its existing vehicles will require significant hardware retrofits to achieve full autonomy.

Audi Expands SAIC Partnership to Boost China Models

Volkswagen Group’s premium brand Audi is expanding its partnership with SAIC Motor to jointly develop future vehicle models under their co-owned, China-focused brand. The move comes as the automaker seeks to stabilize performance in its largest market amid declining sales and intensifying competition.

Uber Expands Tech in Mexico for FIFA World Cup 2026

Uber has announced a comprehensive technological and operational expansion across Mexico’s host cities—Mexico City, Monterrey, and Guadalajara—to manage the anticipated influx of 5 million visitors for the FIFA World Cup 2026. Integrating its mobility and delivery ecosystems, the company is deploying specialized “Uber Zones” at high-traffic hubs, launching a permanent “Personal PIN” security feature, and expanding retail partnerships with OXXO and Costco to mitigate logistical friction associated with the global tournament.