Mexico’s Automotive Production Sees Slight Decline in July
Automotive plants based in Mexico reported to INEGI the production of 302,673 light and medium-sized vehicles last July, representing a 2.2% decline compared to the same month a year ago.
It should be noted that this result is somewhat predictable given that in the comparison month—July 2025—the country’s assembly lines experienced unusually high activity due to the implementation of U.S. tariffs, which led to record volumes for the seventh month of the year in both production and exports.
However, the cumulative total for the first seven months of this year stands at 2,298,977 passenger and commercial vehicles, a volume that, when compared to the same period in 2025, results in a marginal decline of just -0.65%, or a negative difference of 15,100 units, according to the government agency.
In the area of exports, the decline was more pronounced. Shipments totaled 261,534 vehicles, representing a near double-digit drop (-9.7%), in line with the weak performance of the U.S. market, the main destination for vehicles produced here.
While last July’s record result influenced the variation, several brands that drastically reduced their shipments also contributed to the decline.
Mercedes-Benz, which exported only 140 units, reported a decline of -97.7% in this category, while Nissan reduced its overseas shipments by -75.6%, with a volume that barely exceeded 6,000 vehicles.
Mazda reported a -35.4% decline, exporting just under 7,000 units, and Honda reduced its export volume by -21.3%, shipping 15,933 pickup trucks.
Despite these significant declines, total exports for the first seven months of 2026 amounted to 1,950,779 light- and medium-duty vehicles, representing a minimal negative variation of just -0.26% compared to last year’s volume.
In terms of production, the decline at Mercedes-Benz—which still reported production of 100 units in July—was offset by a significant 67% increase at Ford Motor Company, with a volume of nearly 31,200 gasoline, hybrid, and electric vehicles assembled in the country.
Other notable results included Acura, which increased its production by nearly 21.8% with a total of 2,793 SUVs, while BMW, Mazda, and Kia reported increases of slightly more than 16% in their July production volumes.
New Models on the Horizon
Among the new developments included by the Administrative Registry of the Light Vehicle Automotive Industry (RAIAVL) in its July report is the production of the first prototypes of Kia’s K4 compact with hybrid powertrains, in both the hatchback and Sportswagon versions, of which 3 and 4 units were produced, respectively.
Stellantis, for its part, recorded the production of another 126 units of the Jeep Recon electric SUV, for which the brand launched the order configurator nearly a month ago.
Finally, Germany’s Volkswagen introduced a new category in its production report, simply titled “Other Volkswagens.” However, this category does not yet include production figures and remains at zero.
This decision opens the possibility that the first prototypes of the Golf, which will once again be produced in Puebla, may soon begin to be reported, although it could very well be another model currently in development.
