Vietnam breaks into the Mexican auto supply market

Mexico now has a new country on its map of automotive suppliers. Vietnam has begun shipping vehicles to the Mexican market with the first shipment of Hyundai Cretas, a move that marks the debut of a trade route between the two economies and reflects how automakers are being forced to reorganize their supply chains due to tariffs.

This new development comes at a time when brands that rely entirely on imported vehicles must find alternatives to prevent tariffs from driving up the prices of their models. For Hyundai, the change involves shifting imports of its Creta subcompact SUV—one of its best-selling vehicles in Mexico—to a country that has a trade agreement with Mexico granting access to preferential tariffs.

“Based on these analyses, Hyundai Motor de México decided to change the country of origin for our Creta,” said Juan Carlos Ortega, CEO of Hyundai Mexico. The transition, he said, took six months and allowed units manufactured in Vietnam to begin arriving in Mexico in August.

Hyundai's decision brings Vietnam back into the picture as a new sourcing location for the Mexican market. Until now, no other brand had imported cars manufactured in that country for sale in Mexico. The first shipment of the Creta marks the company's entry into an industry where the country of origin determines both costs and the ability to compete on price.