Overview
Like the United States, Mexico’s automotive industry focuses on vehicle and spare parts production, which is highly integrated between the two countries. Some parts cross the border up to a dozen times before being finished. The United States is the largest investor in Mexico’s auto sector, followed by Japan and Germany, accounting for 45 percent, 12 percent, and 10 percent of FDI, respectively, in 2024. Transportation equipment represented 50 percent of that investment. Across the light vehicle, heavy-duty vehicle, and auto parts industries, key drivers include the growing demand for advanced technologies supporting internal combustion engine/ICE, electric, hybrid, and sustainable vehicle trends. This includes innovations in battery technology, electronic components, lightweight, alternative materials, and cleaner fuel options, particularly diesel, new ultra-low sulfur diesel, hydrogen, cells, biofuels, natural gas, and electric applications in the heavy-duty vehicle segment. Additionally, increasing competition, especially from foreign companies, and the need for flexible, high-capacity suppliers with strong traceability are influencing market dynamics across all sectors.
Leading Sub-sectors
Light Vehicles
In 2024, Mexico ranked fifth largest globally in light vehicle manufacturing and in exports, with overseas shipments of vehicles reaching approximately USD 104.8 billion. The main export destinations were the United States with 79.7 percent, followed by Canada and Germany, which together accounted for 91.7 percent of total exports. The automotive industry accounted for 4.5 percent of Mexico’s GDP, composed of the manufacturing of automobiles, trucks, and auto parts, driving mainly the production of ICE vehicles and growing but small-scale hybrid and electric vehicle manufacturing. The sector is the country’s main generator of foreign exchange, generating revenues 22 percent higher than the combined total of remittances and tourism. The sector’s estimated market size is USD 11 billion (2024), with growth averaging 56 percent from 2024 to 2023. Forecasts for new vehicle sales in Mexico for 2025-2029 predict a declining trend. Despite a strong performance in early 2025, a slight annual contraction of 0.2 percent is expected. New car sales are projected to stagnate through 2025-2026 but are expected to grow by 2.3 percent from 2025 to 2029. Mexico’s automotive vehicle sector has a strong OEM base with 37 light vehicle manufacturing plants located across 12 states and belonging to 13 companies. Of these plants, 20 were for vehicles, 10 for engines, and seven for transmissions. Significant players include Audi, BMW, Ford, General Motors, Honda, Hyundai, Kia, Mazda, Nissan-Infinity, Mercedes-Benz, Stellantis, Toyota, and Volkswagen. Buyers who supply them are required to offer design, engineering, R&D, project management, and quality certifications.
Trade Statistics
Table: Mexico Light Vehicle Industry Market Size (USD Billions)
| 2021 | 2022 | 2023 | 2024 | |
| Production | 55.1 | 63.2 | 80.5 | 90.5 |
| Total Exports | 72 | 81.1 | 97 | 104.8 |
| Total Imports | 10.3 | 15.1 | 23.9 | 25.8 |
| Imports from the U.S. | 3.4 | 4.3 | 6 | 6.6 |
| Total Market | -6.6 | -2.8 | 7.4 | 11.5 |
| Exchange Rates | 20 | 20.1 | 17.8 | 18.3 |
Source: INEGI, BANXICO, SAT, SE (HS 8702, 8703, 8704)
Heavy-duty
According to the International Organization of Motor Vehicle Manufacturers (OICA), in 2024 Mexico ranked fifth globally in heavy-duty vehicles for cargo manufacturing and was the leading global exporter of tractor trucks, with overseas shipments reaching approximately USD 52 billion. The industry contributed around 2.4 percent of Mexico’s GDP, driving the production of buses, medium and heavy-duty trucks with innovation, technology transfer, and advanced manufacturing within the country. The sector’s estimated market size is USD 111 billion (2024), with growth averaging 17 percent since 2023. Annual growth projections for the next five years are uncertain. Mexico is the fourth-largest exporter of heavy-duty vehicles for cargo and the second-largest export market after Canada for U.S. medium and heavy-duty trucks. Mexico’s heavy-duty vehicle sector hosts 14 manufacturers and assemblers of buses, trucks, tractor-trucks, and one power-train manufacturer. All of them operate through 12 manufacturing plants nationwide. The heavy-duty vehicles industry is represented by Daimler Buses Mexico, Dina, Freightliner, Hino, International, Isuzu, Kenworth (Paccar), Mack, Man, Mercedes-Benz Vans, Scania, Volkswagen, Volvo, and Cummins. Foton, as a Strategic Participant in the association, participates with a voice, no vote. Some purchasing decisions are made at the brand’s country of origin, while others are made in Mexico, especially for required parts, and they can choose local and or foreign suppliers.
Table 2: Mexico Heavy-Duty Vehicle Industry Market Size (USD Billions)
| 2022 | 2023 | 2024 | |
| Production | 12.7 | 15.5 | 15.1 |
| Total Exports | 56.4 | 52.2 | 52.9 |
| Total Imports | 3.8 | 5.9 | 7.7 |
| Imports from the U.S. | 0.3 | 0.4 | N/A |
| Exchange Rates | 20.1 | 17.8 | 18.3 |
Source: INEGI, AMDA, and ITA Office of Transportation and Machinery
Auto Parts
In 2024, Mexico ranked as the fourth-largest global spare parts producer and exporter, with overseas shipments of parts reaching approximately USD 106 billion. The industry is strong in the production of electric parts, seating, suspension, engine, and transmission parts. The sector’s estimated market size is USD 83.9 billion (2024), representing a decrease of 1.19 percent compared to 2023. The United States remains Mexico’s leading supplier of auto parts, accounting for 52.2 percent of total auto parts imported. U.S. manufacturers of auto parts operating in Mexico represent 18 percent of all companies, followed by Japan, Germany, Canada, France, and South Korea. Significant players include BorgWarner, Rassini, Visteon, Bosch, Magna, ZF Group, among others. Buyers supply the tier base and are required to offer design, engineering, R&D, project management, and quality certifications. In contrast to the United States, Mexico’s auto parts industry focuses on complete vehicle systems and labor-intensive production parts. OEMs make up one percent of the manufacturing base, with Tier 1 suppliers at 60 percent, Tier 2 at 31 percent, and Tier 3 at eight percent. Mexico’s automotive parts sector comprises 2,135 companies; over 700 of these companies are Tier 1 suppliers and several are Tier 2 to Tier 3 level companies.
Table 3: Mexico Auto Parts Industry Market Size (USD Billions)
| 2021 | 2022 | 2023 | 2024 | |
| Production | 92.7 | 104 | 120 | 121.3 |
| Total Exports | 78.5 | 89.2 | 106 | 106 |
| Total Imports | 53.4 | 60.7 | 68.2 | 68.6 |
| Imports from the U.S. | 28.1 | 33 | 36.3 | 35.8 |
| Total Market | 67.6 | 75.4 | 82.9 | 83.9 |
| Exchange Rates | 20.3 | 20.1 | 17.8 | 18.3 |
Source: National Auto Parts Industry Association (INA)
The industry can be segmented by geography:
Northern Mexico: Coahuila leads the region with 14 percent manufacturing market share, followed by Nuevo Leon 12.8 percent, Chihuahua 8.7 percent, Tamaulipas 4.2 percent, and Sonora. OEM presence: Toyota and Kenworth-Paccar (Baja California), Ford (Sonora and Chihuahua), Stellantis and Freightliner (Coahuila), Kia, Hyundai, International, and Daimler Buses (Nuevo Leon).
Western Mexico: Guanajuato leads the region with 13.8 percent manufacturing market share, followed by Queretaro 7.9 percent, San Luis Potosi 7.1 percent, Aguascalientes 4.4 percent, and Jalisco. OEMs presence: Nissan, Mercedes-Benz, and Infinity (Aguascalientes), General Motors, BMW, and Cummins (San Luis Potosí), Honda and Foton (Jalisco), Mazda, Toyota, Ford, Honda, General Motors, Hino, and Volkswagen (Guanajuato), Scania, VW Trucks and Buses, MAN (Queretaro).
Central Mexico: Puebla leads the region with 6.6 percent, followed by Estado de Mexico at 6.3 percent, Morelos, Tlaxcala, and Mexico City. OEM presence: Volkswagen and Audi (Puebla), Dina (Hidalgo), Stellantis and General Motors, Mack Volvo, Freightliner and Isuzu (Estado de Mexico).
*Tier 1, Tier 2, and Tier 3 suppliers are spread out near OEMs.
Opportunities
There is demand for industrial technology in advanced manufacturing, battery technology, production, storage, and high-voltage management, electronic components, and circular economy materials. There is a need to supply vehicle manufacturing and assembly plants for different vehicle production, hybrid and electric vehicle production technology with design, engineering, and systems needed to develop the sector with more advanced technologies. For heavy-duty vehicles, leading opportunities include supplying manufacturing, assembly plants with all types of fuel for heavy-duty vehicles, and diagnosis and repair equipment in the aftermarket, telematics, and heavy-duty vehicle scrapyard equipment. The tier supplier base looks for printed circuit boards, controllers, telematics, radio, internal lighting, casting processes, bolts and nuts, fasteners, harnesses, to more sophisticated needs such as critical minerals, chargers, electric charging stations, among others. In the auto parts subsector, leading opportunities include supplying Tiers 1, 2, and 3 supplier bases with ICE engine parts, parts for battery storage, gearboxes, start-up cables, steering system parts, lighting, air compressors, insulation, turbo compressors and turbo chargers, alternators, brake parts, and lightweight parts, software, hardware, diagnosis and repair equipment.
Resources
- Mexican Automotive Industry Association (AMIA)
- The Buses, Trucks and Tractor Trucks National Manufacturers Association (ANPACT)
- Mexican Auto Parts Industry Association (INA)
- National Institute of Statistics and Geography (INEGI)
- International Trade Administration (ITA)
- The Economist Intelligence Unit Limited
Events
INA Paace Automechanika: July 8-10, 2026. Mexico City.
Expo Transporte ANPACT: November 12-14, 2026. Guadalajara, Mexico.
Automotive Meetings: February 17-19, 2026. Queretaro, Mexico.
Commercial Specialist
For further information and assistance in exploring opportunities in Mexico’s automotive sector, contact: Monica Martinez (Monica.Martinez@trade.gov)