The Mexico automotive market continues to strengthen its position as one of the most dynamic and strategically important automotive hubs in the Americas. The market reached a volume of 63.90 thousand units in 2024, and is projected to grow at a CAGR of 4.50% between 2025 and 2034, ultimately reaching 99.23 thousand units by 2034. This growth is being powered by Mexico’s expanding manufacturing capacity, favourable trade agreements, and its reputation as a leading export-oriented automotive ecosystem.Mexico is home to some of the world’s largest automotive assembly and production plants, serving as a critical supply base for both North American and global markets. The country’s competitive labour costs, extensive supplier networks, and robust logistics infrastructure continue to attract major automakers. Growing domestic demand for smart, fuel-efficient, and technologically advanced vehicles further strengthens market momentum.
The market is segmented by vehicle type into hatchback, multi-purpose vehicle (MPV), sedan, and sports utility vehicle (SUV) categories. SUVs and sedans remain the highest-demand segments due to their versatility and suitability for urban as well as long-distance travel, while hatchbacks continue to appeal to the budget-conscious and young driver demographic.
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By engine type, the Mexico automotive market includes:
Hybrid & Electric Vehicles (BEV, FCEV, HEV, PHEV)
Internal Combustion Engine Vehicles (CNG, diesel, gasoline, LPG)
Electric and hybrid vehicles are gaining rapid traction as Mexico moves toward greener mobility solutions. Federal and regional incentives, coupled with growing charging infrastructure investments, are supporting the adoption of BEVs and PHEVs. Meanwhile, gasoline-powered vehicles continue to hold a dominant share in both production and sales, given their affordability and strong consumer familiarity.
Regionally, the market spans Baja California, Northern Mexico, The Bajío, Central Mexico, Pacific Coast, and Yucatán Peninsula. The Bajío region—home to major automotive clusters in states like Guanajuato and Querétaro—remains one of the most significant manufacturing hubs, hosting several global automakers and Tier-1 suppliers. Northern regions such as Nuevo León and Coahuila also play a major role in vehicle assembly, owing to strong industrialisation and proximity to the U.S. border.
Key companies operating in the Mexico automotive market include BMW AG, Ford Motor Company, Mercedes-Benz Group, Honda Motor, Volvo, Tesla, Toyota Motor Corporation, Volkswagen AG, Nissan Motor Co., and Hyundai Motor Company. These manufacturers are actively expanding production capacity, integrating advanced manufacturing technologies, and launching electric models to serve both domestic and international markets.
With rising demand for hybrid and electric vehicles, strong export potential, and continuous investments from global automakers, the Mexico automotive market is expected to maintain steady growth through 2034.
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