Mexico attracted 204 automotive investment projects in 2025, according to data from the Mexican Automotive Industry Association (AMIA)

In addition, Foreign Direct Investment (FDI) in the Mexican automotive sector has been on the rise. This is due to decisions by private original equipment manufacturers (OEMs) to locate their production in North America. As a result, they are anticipating continued demand in the region. 

Automotive Investment Projects

In 2025, the sector attracted investments in 204 announced projects from 20 different countries. The United States accounted for 45% of the total, followed by Japan with 12% and Germany with 10%. 

For AMIA Executive President Rogelio Garza, it is particularly significant that domestic reinvestment accounted for 53.4% of total FDI. This means that companies already operating in Mexico chose to expand their presence rather than relocate. 

From his perspective, this pattern of reinvestment is the clearest market signal that the sector is healthy, solvent, and demand-driven—a profile structurally incompatible with excess capacity, as alleged in the Federal Register publication that initiated the Section 301 investigation in the United States. 

Consequently, Garza argued that this demonstrates that the expansion of production benefits both the growing domestic market and the export market.

Domestic Market

Of the approximately 1.5 million vehicles sold in the Mexican market in 2024, only one-third were assembled in Mexico. 

Overall, far from generating an excess of domestic supply, Mexico’s domestic automotive market has grown significantly in the post-USMCA period. This growth was driven by rising consumer incomes and pent-up demand. 

In response to the U.S. government’s ongoing Section 301 investigation, Garza explained that the Mexican automotive sector is dominated by private U.S., Japanese, and German companies, not by state-directed capital, and that most recent foreign direct investment represents the reinvestment of profits by companies already operating in Mexico, driven by continued profitability and demand from the North American market.