Mexico Automotive Market Report and Forecast 2025-2034

Key Takeaways

• Automobile production in Mexico recorded a y-o-y growth of 13.54% in the first three quarters of 2023.

• The output produced by the Mexican automotive industry contributes nearly 4% to the country’s GDP.

• Automobile exports rose by 14.22% y-o-y in the first three quarters of 2023 in Mexico.

Mexico is the 7th largest manufacturer of passenger vehicles worldwide. It is also the 6th largest producer of heavy-duty vehicles worldwide and ranks among the top 5 automobile producers in the world. This is because of the presence of cheap, yet technically skilled labour, high-quality infrastructure, and favourable government policies. Increasing investments by the Mexican government for creating a thriving business environment is expected to accelerate the Mexico automotive market growth in the forecast period.

The United States is a key export destination for vehicles manufactured in Mexico. Many American automobile manufacturers nearshore their operations to Mexico to overcome logistical challenges which increase the price of goods in other markets. This trend is also witnessed in the case of other Asian automotive manufacturers, which are gradually shifting their manufacturing operations to Mexico, thereby driving the market growth.

Chinese businesses aiming to expand their market presence in North America can also stand to gain significant benefits by moving their production operations to Mexico. This could result in a cost saving of 5-20% due to the thriving economic condition of the country and favourable government policies. This is expected to drive the Mexico automotive market development in the forecast period.

The shift towards electric vehicles is one of the key Mexico automotive market trends, which is likely to favour the market expansion. Technological advancements aimed at enhancing sustainable development are revolutionising the Mexican automotive industry. As rising consumer awareness about carbon emissions drives the electrification of transport, the demand for electric vehicles is expected to result in a big boost, thereby driving the market growth.

Market Segmentation

Mexico Automotive Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Market Breakup by Vehicle Type

• Hatchback

• Multi-purpose Vehicle

• Sedan

• Sports Utility Vehicle

Market Breakup by Engine Type

• Hybrid And Electric Vehicles
  • BEV
  • FCEV
  • HEV
  • PHEV

• Internal Combustion Engine Vehicle
  • CNG
  • Diesel
  • Gasoline
  • LPG

Market Breakup by Region

• Baja California

• Northern Mexico

• The Bajío

• Central Mexico

• Pacific Coast

• Yucatan Peninsula

Key Mexico automotive market players are engaged in upscaling their production capacities to meet the increasing demand for smart vehicles from domestic consumers.

The key market players are BMW AG, Ford Motor Company, Mercedes-Benz Group AG, Honda Motor Co. Ltd., Volvo AB, Tesla Inc., Toyota Motor Corp., Volkswagen AG, Nissan Motor Co. Ltd., and Hyundai Motor Company, among others.

Key Highlights of the Report