# Mexico auto industry faces production and heavy vehicle slun > Live situation record from CLSTR: https://clstr.news/situations/mexico-auto-industry-under-us-tariffs > Updated: 2026-08-21T12:00:15.000Z. Sources: 37. Developments: 4. By mid-2026, Mexico’s automotive sector faced significant volatility. While light-vehicle production and exports saw declines in July, domestic sales grew by 3.4%. The National Association of Bus, Truck, and Tractor Manufacturers (ANPACT) highlighted a 30.4% decrease in used heavy-duty vehicle imports from the U.S. between January and June, warning that the high ratio of used to new vehicle imports—53.4 used units for every 100 new ones sold—threatens domestic employment and the production chain. In the heavy vehicle segment, retail sales have entered a prolonged downturn, marking 17 consecutive months of annual decline as of May 2026. Monthly retail sales for May reached 2,840 units, a 15.6% decrease compared to May 2025. For the period of January to May 2026, total sales fell 26.3% year-on-year. AMDA executive president Guillermo Rosales Zárate noted that declines occurred across all market segments, bringing sales levels below pre-pandemic figures. Diesel remains the dominant energy source, accounting for 98.35% of the market, while electric and hybrid vehicles represent less than 1% each. Consumer preferences in Mexico continue to favor traditional models, such as the Nissan Versa and Chevrolet Aveo, driven by concerns over maintenance and fuel costs. Regionally, the Bajío area is shifting its focus from attracting new investment toward technical infrastructure and maintenance to support existing operations. Despite reports of manufacturing declines in areas like Querétaro, industry representatives maintain the sector remains stable due to ongoing investments. Meanwhile, the automotive parts industry is seeking to increase national content through U.S. exports, though a growing need for specialized labor persists to manage technological transitions. ## Timeline ### 2026-08-21: Latin American automotive markets show divergent growth and technology trends Latin American automotive markets show diverse trends: Mexico faces heavy vehicle declines, Colombia leads in Tesla sales, and Brazil sees massive growth driven by Chinese manufacturers. 10 sources. https://clstr.news/cluster/mexico-heavy-vehicle-retail-sales-decline-for-17th-consecutive-month ### 2026-08-10: Mexico automotive sector faces mixed production and export trends Mexico's automotive industry faces a complex landscape in 2026, with declining light vehicle exports and production offset by rising domestic sales and a push for better heavy-duty vehicle import regulations. 25 sources. https://clstr.news/cluster/mexico-automotive-production-and-exports-decline-in-july-2026 ### 2026-08-03: Mexican auto sector faces plant closures and 180,000 job losses over US tariffs US tariff moves have forced Chinese auto firms in Coahuila to shut or scale back, while Mexico’s autoparts industry loses about 180,000 jobs. 2 sources. https://clstr.news/cluster/mexican-auto-sector-faces-plant-closures-and-180000-job-losses-over-us-tariffs ### 2026-07-28: Mexico's auto industry stays stable amid US tariffs as used‑car sales slip Mexico's auto production and exports remain stable despite US tariffs, while used‑car sales dip 1.6% as easier credit pushes buyers toward new vehicles. 2 sources. https://clstr.news/cluster/mexicos-auto-industry-stays-stable-amid-us-tariffs-as-usedcar-sales-slip --- Cite as: Mexico auto industry faces production and heavy vehicle slun. CLSTR, https://clstr.news/situations/mexico-auto-industry-under-us-tariffs