Government will encourage the substitution of car imports

Given the growth in Chinese car sales in the Mexican market, the Mexican government will encourage a reduction in new vehicle imports to increase domestic production, enhance domestic content, and strengthen local industry.

Mexican President Claudia Sheinbaum will meet this week with the automotive industry operating in Mexico to review the Automotive Decree that balances the market, with the goal of selling a greater number of low-end (cost) cars made in the country, and stop importing them from China or India, or other nations that have been used to supply units for Mexicans.

Marcelo Ebrard, Secretary of Economy, said: "What we want to do is increase domestic content. Of course, we have to protect established industries. We're going to have to reduce the number of vehicles imported from abroad with the system we have today because the rules are changing, and our main partner is changing the rules."

The proposal is part of Plan Mexico, which seeks to foster a more just and self-sufficient economy.

Jimena Escobedo Juárez, head of the Productive Development Unit of the Ministry of Economy, met with Global Companies over the weekend, including representatives from Stellantis, General Motors, Nissan, and many other brands. She informed them that "we will work to increase domestic production. We will encourage more investment."

According to the Mexican Association of Automobile Dealers (AMDA), of all new car sales in Mexico during the first four months of 2025, 63% were imported products, primarily from countries such as China, the United States, Brazil, Japan, India, and Thailand, among others.

Escobedo explained to the automakers that "it's about analyzing how we can work together to update the current automotive decree in favor of production, which is the direction followed by Plan Mexico."

This, he added, will be accompanied by public policies that not only encourage new investments but also ensure the operational continuity of existing plants in Mexico.

He commented that there is a high consumption of Asian cars, which "isn't bad, we're not against it in the least." However, efforts will be made to level the playing field for automakers already operating in the country.

In a meeting with Coparmex, Marcelo Ebrard guaranteed that the upcoming changes will not affect the established industry in Mexico.

According to AMDA, of all new car sales in Mexico during the first four months of 2025, 63% were imported products.