FX.co ★ Mexico Auto Production Falls Again

Mexico’s automobile production declined by 1.4% year-on-year to 344,940 units in August 2026, following a 2.2% drop in July. The downturn reflects ongoing uncertainty in the auto sector, as shifting US trade policies continue to disrupt manufacturers’ planning and investment decisions.

In his second term, US President Trump imposed a series of tariffs on multiple countries, including Mexico. Although the Trump administration opted not to renew the USMCA, the agreement will technically remain in force for another decade unless one of the member countries formally withdraws. During this period, it is subject to annual reviews that could result in substantial revisions. At the same time, the United States and Mexico are pursuing separate bilateral trade negotiations.

On the production side, output fell steeply at several major manufacturers: Mercedes (-99%), Nissan (-26%), Ford Motor (-25.7%), Stellantis (-3.8%), and Toyota (-3%). By contrast, BMW Group recorded a sharp increase, with production surging by 359%.