Mexico's light vehicle exports decreased by 9pc in February, as automakers pointed to weakening demand in the US, their key market.
Automakers in Mexico shipped 258,952 units in February, with 84pc bound for the US, according to statistics agency Inegi. Exports were down annually for a second consecutive month, following a 14pc drop in January.
Production declined slightly to 317,178 units, a 0.8pc decrease from a year earlier, while domestic sales rose by 3pc to 117,678 vehicles, the same data show.
Mexican automaker association AMIA president Rogelio Garza attributed the export slowdown to rising US inflation, which accelerated to 3pc in January from 2.4pc in September.
"This increase in inflation automatically affects the domestic market and has lowered demand in the US," Garza said. "If over 80pc of what we send is for US consumption, then when consumption drops, Mexican exports and production fall in tandem."
Uncertainty over potential 25pc US tariffs on Mexican goods also contributed to the weaker exports, Garza said. Some companies have paused shipments while awaiting determinations on whether their products qualify for zero tariffs under the US-Mexico-Canada (USMCA) free trade agreement.
Separately, Inegi reported 10,248 electric (EV) and hybrid vehicles sold domestically in February, a 29pc annual increase but down by 6pc from January. This marks two straight months of declining sales after a record 15,360 units were sold in December.
EVs and hybrids accounted for 9pc of total domestic auto sales in February, up from a 6.5pc share a year earlier but flat from January's 9pc share.
Meanwhile, EV and hybrid production surged by 90pc to 16,175 units in February from a year earlier, but fell by 7pc from January. Total output in 2024 reached 169,929 units, a 60pc jump from 2023.
