FX.co ★ Mexico Car Output Slumps 17.7% in October

Mexico’s light vehicle output dropped 17.7% year-on-year in October 2026, falling to 302,803 units from 367,928 a year earlier and marking the sharpest monthly decline since 2021. The downturn was driven primarily by softer demand in the US, compounded by new tariffs on Mexican-built vehicles entering the US market and the withdrawal of incentives for electric cars.

Several leading automakers posted steep reductions in production. General Motors recorded the largest decline, with output down 45.5% compared with October 2025. Stellantis reported a 37.4% drop, while BMW Group and Nissan registered decreases of 17.4% and 16.4%, respectively. Kia’s production proved more resilient, slipping just 2.8%.

The slump weighed on year-to-date figures as well. Between January and October 2026, Mexico assembled 3.25 million vehicles, a 3.9% decline from the 3.39 million units produced in the same period of the previous year.