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Mexico's auto industry facing tariffs

Manuel Montoya, director of CLAUT, stressed that T-MEC is crucial to protect Mexico from the tariff war. He urged compliance with rules of origin and strengthening regional integration to compete with China and attract investment in the automotive sector.

According to CLAUT, 2024 was the best year in the history of Mexico's automotive industry, achieving production of 3.98 million light vehicles, a figure close to the desired target of 4 million. Of these, 3.47 million were destined for export, with the United States as the top destination with nearly 80 percent of the total. "The Mexican automotive industry is essentially an export industry.

In terms of Mexico's share in the region, of the nearly 16 million vehicles produced in North America, 10 million are produced in the United States, 4 million in Mexico and just over 1 million in Canada. However, growth in Mexico has not translated into regional growth because of increased imports, especially from China.

One of the most sensitive points reported is that 300,000 cars imported from China were sold, many without a single part produced in Mexico.

In 2023, Mexico produced $124 billion worth of auto parts, although Montoya reminded that the U.S. industry is still three times larger. Coahuila, Guanajuato, and Nuevo Leon lead Mexican production, with about 13 percent each.

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