Passenger cars: Mexico's second-largest export to the US, by value

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Mexico Trade Corridor · Product brief · HS 8703

Cars and SUVs are Mexico's second-largest export to the United States after computers. This brief sets out the numbers from both sides, the tariffs in force, and where makers, dealers and suppliers need working capital.

Published October 23, 2026 · Facts as of October 23, 2026 · 10 min read · Trade data: UN Comtrade, 2020 to 2025 · Rules as of October 23, 2026

Facts as of October 23, 2026. This page states the facts as they stood on that date. Tariffs, rules and figures may have changed since publication. Tariffs and trade policy change often, so we review these pages every month and update them.

#2

Mexico's No. 2 export to the US in 2025, ranked by value as reported by Mexico (UN Comtrade, 4-digit HS codes). It is also No. 6 among imports from the US. The US figure is shown beside it because the two countries count the same trade differently.

US$44.9bnMexico's exports to the US, 2025, as reported by Mexico

US$44.7bnThe same flow, 2025, as reported by the US

+54.4%Change 2020 to 2025, Mexico data

US$4.4bnMexico's imports from the US in the same code, 2025, Mexico data

What is it?

HS 8703 covers cars, SUVs and other motor vehicles made mainly to carry people, with gasoline, diesel, hybrid or electric power. Mexico reported US$44.9 billion of these exports to the US in 2025 ¹.

Why does it matter?

Passenger cars were 8.2% of Mexico's reported exports to the US in 2025 ¹. A few vehicle makers build most of them, so a change in the US car tariff reaches their plants in Mexico and the suppliers behind them ^2,11.

How does it work?

Vehicle makers assemble cars in Mexico and send them north by rail, ship or truck. The US importer, usually the maker's US arm, pays the Section 232 tariff on the non-US content of models that qualify under USMCA ^9,11,12.

In this brief

1. How big is the passenger car trade between Mexico and the US?
2. Which cars cross the border?
3. Who builds the cars, and where?
4. How do the cars get from the plant to the dealer?
5. Which rules and tariffs apply?
6. Where is cash needed, and how is it financed?
7. What should car traders watch next?

01How big is the passenger car trade between Mexico and the US?

Mexico reported US$44.9 billion of passenger car exports to the US in 2025. That is up 54.4% from US$29.1 billion in 2020, and down 5.3% from the 2024 peak of US$47.4 billion ¹. Cars were 8.2% of Mexico's US$545.4 billion of reported exports to the US ¹.

US data shows US$44.7 billion of car imports from Mexico in 2025, close to Mexico's figure ¹. US customs counted 2,277,235 cars from Mexico in 2025, 7.1% more than in 2024. The average customs value was US$19,629 per car, down from US$23,515 in 2024 ¹. Our data gap explainer sets out why the two countries' figures differ.

Trade south is much smaller. Mexico reported US$4.4 billion of car imports from the US in 2025, so it sold US$40.5 billion more cars to the US than it bought ¹. US data shows US$4.0 billion of car exports to Mexico ¹.

Chart

Passenger car trade, both directions, both sides of the data

• Mexico to US, Mexico data
• Mexico to US, US data
• US to Mexico, Mexico data
• US to Mexico, US data

US$ billion. Solid lines: as reported by Mexico. Dashed lines: as reported by the US. Source: UN Comtrade, 2020 to 2025.

02Which cars cross the border?

Gasoline cars with engines of 1.5 to 3 liters lead. That line was US$18.8 billion in 2025, or 41.7% of the total, as reported by Mexico ¹. Cars with engines of 1 to 1.5 liters follow at US$13.9 billion, or 30.9% ¹.

Electric-only cars were US$8.7 billion, or 19.4% of Mexico's car exports to the US. US data puts the same line at US$8.3 billion ¹.

The southbound mix leans to larger engines and hybrids. Of Mexico's US$4.4 billion of car imports from the US, cars with engines over 3 liters were US$1.4 billion, cars of 1.5 to 3 liters US$1.4 billion, and hybrids that do not plug in US$1.3 billion ¹.

Chart

The largest passenger car lines Mexico ships to the US

US$ billion and share of the 4-digit total, 2025, as reported by Mexico. Source: UN Comtrade.

03Who builds the cars, and where?

Mexico's statistics agency, INEGI, counts light vehicles, which include cars, SUVs, pickups and vans. Mexico built 3,953,494 light vehicles in 2025, 0.9% fewer than in 2024, and exported 3,385,785. The US took 2,653,897 of those exports, or 78.4% ³. Pickups fall under HS 8704 and have their own brief: trucks.

General Motors is the largest producer. It built 857,431 light vehicles in Mexico in 2025 and exported 822,858 ³. From January to September 2026, GM built 659,861 units, Nissan 385,038, Stellantis 345,522, Ford 297,037 and Volkswagen 286,668 ².

The most exported car and SUV models in 2025 included the Chevrolet Equinox (274,025 units), Nissan Kicks (177,077), Ford Bronco Sport (176,226), Kia K4 (167,616), Honda HR-V (151,468) and Audi Q5 (140,687) ⁴. GM builds the Equinox in San Luis Potosí and electric models in Ramos Arizpe, Coahuila ⁵. Kia started building the EV3, its first electric model made in Mexico, at Pesquería, Nuevo León, in 2026 ⁷. Nissan stopped production at its CIVAC plant in Morelos in March 2026 and moved its models to Aguascalientes ⁶.

04How do the cars get from the plant to the dealer?

Finished cars travel north by rail, ship and truck. CPKC runs a closed-loop autorack rail service between Mexico, the US and Canada that serves 18 or 19 Mexican plants. Loaded racks enter the US at Laredo and go on to Dallas, Kansas City, Chicago and Minneapolis ⁹. Across all goods, trucks carried 73.6% and rail 10.9% of US-Mexico freight value in 2025 ¹⁰. Our guide to border crossings covers each port.

Mexican ports moved 2,262,289 vehicles in 2025, 1.3% fewer than in 2024. Lázaro Cárdenas handled 804,221, Veracruz 770,151 and Altamira 475,437 ⁸. Vehicle exports by sea were 987,006 from the Gulf and Caribbean coast and 192,642 from the Pacific ⁸.

The vehicle maker usually sells to its own US arm, which acts as the importer of record and clears US customs ^11,12.

1. Assembly plantA vehicle maker builds the car in Coahuila, San Luis Potosí, Nuevo León, Aguascalientes or another state, from parts that may cross the border more than once.
2. PaperworkThe maker issues a commercial invoice and a USMCA certification of origin. A customs broker files the Mexican export declaration.
3. Rail, ship or truckAutorack trains run north through Laredo. Ships load at ports such as Veracruz, Altamira and Lázaro Cárdenas.
4. US customsThe US importer pays the 25% Section 232 tariff, on the non-US content only for approved USMCA models.
5. US dealerThe car reaches a dealer, who holds it on floor plan credit until a retail sale.

CPKC's autorack rail service serves 18 or 19 Mexican vehicle plants. Loaded racks enter the US at Laredo.

05Which rules and tariffs apply?

Since April 3, 2025, the US has charged a 25% Section 232 tariff on imported passenger vehicles and light trucks. It is an ad valorem duty, charged on value. For models that qualify under USMCA, the 25% applies only to the non-US content, once the US Commerce Department approves the maker's US-content figure ^11,12. As of October 18, 2026, the 25% rate remained and no cut had been confirmed ¹³.

To qualify under USMCA, a vehicle needs 75% regional value content, its maker must buy 70% of its steel and aluminum in North America, and 40% of its labor value (45% for light trucks) must come from work paid at least US$16 an hour ¹⁶. The auto parts brief and our guide to USMCA rules of origin explain these rules.

The 10% Section 301 tariff on Mexican goods, in force since July 24, 2026, does not apply to goods under Section 232 or to goods entered with a USMCA claim ¹⁷. Makers that assemble vehicles in the US can claim an offset of 3.75% of the vehicle's list price, extended through 2030 ^14,15. All rates here are as of October 23, 2026. Our guide to US tariffs on Mexican goods covers the full list.

Rules in force

As of October 23, 2026. Live list: corridor watch.

Measure	What it does	Since	Status
US Section 232, passenger vehicles and light trucks	25% ad valorem. USMCA-qualifying models pay only on non-US content, after Commerce approves the US-content figure 11,12	Apr 3, 2025	In force
USMCA auto rules of origin	75% regional value content; 70% North American steel and aluminum; 40% labor value content (45% light trucks) at US$16 an hour or more 16	Jul 1, 2020	In force
US Section 301, forced labor	10% on Mexican goods. Exempt with a USMCA claim; goods under Section 232 excluded 17	Jul 24, 2026	In force
US auto tariff offset	Offset of 3.75% of list price for US-assembled vehicles, extended through 2030. Confirm the end date in the Federal Register 14,15	Oct 17, 2025	Check end date
USMCA joint review	US did not agree to renew in current form on July 1, 2026. Agreement stays in force with annual reviews 18	Jul 1, 2026	Under review

06Where is cash needed, and how is it financed?

Vehicle makers usually settle car exports inside their own group. The trade finance need sits elsewhere in the chain: with parts suppliers, carriers and dealers. The US importer pays any Section 232 duty when the cars clear customs, before they are sold, so a higher duty means more cash out early.

Dealers hold cars on credit lines until a retail sale. This is floor plan finance. A tariff change or a shipping delay can lengthen the time a car waits for a buyer, and the dealer pays interest for that time.

In Mexico, 60.7% of new vehicles sold in the first half of 2025 were bought with a loan. Vehicle makers' own finance arms wrote 79.4% of the 430,587 loans and banks wrote 19.3% ¹⁹. Parts suppliers carry the longest wait for payment. Our guide to finance for tier 1 and tier 2 suppliers covers their options.

Where the cash goes

From model launch to retail sale

1. Before production
   Model launchThe maker and its suppliers pay for tooling and line set-up for a new model.
2. Production
   Parts and wagesParts arrive from suppliers in Mexico and the US, often on credit terms. See auto parts.
3. Shipment
   Freight and dutyRail or sea freight is paid, and the US importer pays any Section 232 duty on entry.
4. Dealer stock
   Waiting for a buyerThe dealer holds the car on floor plan credit and pays interest until it sells.
5. Sale
   Cash returnsThe retail buyer pays, often with a loan from the maker's finance arm.

The order of cash needs is typical for a vehicle maker and its dealers. Actual days depend on each contract.

Dealer stockInventory finance

Funds cars held for sale, with the cars as security.

Dealer networkDistributor finance

A program backed by the maker that funds its dealers to hold stock until customers pay.

Parts suppliersPayables finance

The vehicle maker approves supplier invoices and a finance provider pays the supplier early.

Buyer may not payTrade credit insurance

Covers most of an unpaid invoice if a covered buyer fails to pay.

07What should car traders watch next?

USMCA stays in force. On July 1, 2026 the US did not agree to renew it in its current form, so the agreement now goes through annual joint reviews until 2036 unless the three countries confirm an extension ¹⁸. Reported US requests include regional value content near 82% and a 50% US-content rule. These are not in force ^13,20.

The 2026 numbers are softer. From January to September 2026, Mexico's light vehicle production fell 2.4% and exports fell 1.5%. The US took 76.4% of those exports ². The live list of measures is on our corridor watch page.

• Nov 4, 2026INEGI publishes its next monthly light vehicle data ².
• By Dec 2026Next round of US-Mexico talks on autos. No date announced as of October 18, 2026. The US side targets interim arrangements by year-end ¹³.
• Jan 12, 2027Deadline for public comments to the US Trade Representative on the USMCA review ¹³.
• 2030Reported end of the 3.75% auto tariff offset. Confirm in the Federal Register ^14,15.
• Jul 1, 2036USMCA ends on this date unless the three countries confirm an extension. Annual reviews run until then ¹⁸.

Questions traders ask

How much passenger car trade is there between Mexico and the US?

Mexico reported US$44.9 billion of passenger car exports to the US in 2025 under HS 8703, and US$4.4 billion of imports from the US. US data shows US$44.7 billion of imports from Mexico and US$4.0 billion of exports to Mexico.

Do cars made in Mexico pay US tariffs?

Yes. The US charges a 25% Section 232 tariff on imported passenger vehicles. For models that qualify under USMCA, the tariff applies only to the non-US content, once the US Commerce Department approves the maker's US-content figure. These rules are as of October 23, 2026.

Which car makers build the most vehicles in Mexico?

General Motors built the most light vehicles in Mexico in 2025, at 857,431 units. From January to September 2026, GM was followed by Nissan, Stellantis, Ford and Volkswagen, according to INEGI.

How many electric cars does Mexico export to the US?

Mexico reported US$8.7 billion of electric-only car exports to the US in 2025, or 19.4% of its passenger car exports to the US. US data shows US$8.3 billion for the same line.

How are car dealers financed?

Dealers usually hold new cars on floor plan credit lines, which they repay when each car sells. In Mexico, vehicle makers' own finance arms also wrote 79.4% of new vehicle loans to buyers in the first half of 2025.

Read next

• Corridor hubThe Mexico to US corridor: what moves and how it is paid for
• Corridor hubCorridor watch: tariffs and rules in force
• Product briefAuto parts: the trade that crosses the Mexico-US border in both directions
• Product briefTrucks and pickups: Mexico's US$35.8 billion export to the US
• Corridor guideUSMCA rules of origin and certificates
• Corridor guideUS tariffs on Mexican goods: what applies now
• Ossiano Trade Finance GuideHow each trade finance instrument works
• GlossaryTrade finance terms in plain English

Trading passenger cars between Mexico and the US? Ossiano Capital works on trade finance in this corridor.

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Sources and notes

1. UN Comtrade, annual trade data 2020 to 2025, HS 8703, Mexico and the US as reporters. Downloaded October 2026; 2025 figures may be revised. https://comtradeplus.un.org/
2. INEGI, Registro administrativo de la industria automotriz de vehículos ligeros (RAIAVL), press release, October 7, 2026 (data to September 2026). https://www.inegi.org.mx/contenidos/saladeprensa/boletines/2026/rm_raiavl/rm_raiavl2026_10.pdf
3. Latamobility, Mexico: automobile industry ends 2025 with production of 3.95 million vehicles (INEGI data), January 16, 2026. https://latamobility.com/en/?p=56708
4. Autocosmos, Los vehículos hechos en México más exportados durante 2025, January 15, 2026. https://noticias.autocosmos.com.mx/2026/01/15/los-vehiculos-hechos-en-mexico-mas-exportados-durante-2025
5. Mexico Industry, Autos Chevrolet fabricados en México: lista completa y dónde se producen, August 7, 2026. https://mexicoindustry.com/noticia/autos-chevrolet-fabricados-en-mexico-lista-completa-y-donde-se-producen
6. El Imparcial, Nissan clausura la planta de CIVAC, April 1, 2026. https://www.elimparcial.com/mexico/2026/04/01/el-fin-de-una-era-industrial-nissan-clausura-la-planta-de-civac-con-65-millones-de-autos-fabricados-y-concentra-sus-operaciones-en-complejos-mas-modernos-por-bajos-niveles-de-eficiencia/
7. Cluster Industrial, Kia inicia en Nuevo León la producción del EV3, 2026. https://clusterindustrial.com.mx/kia-inicia-en-nuevo-leon-la-produccion-del-ev3-su-primer-electrico-hecho-en-mexico/
8. Mexico Business News, Mexico auto ports see first post-pandemic decline in 2025 (SEMAR, INEGI, T21 data), January 26, 2026. https://mexicobusiness.news/automotive/news/mexico-auto-ports-see-first-post-pandemic-decline-2025
9. Railway Age, CPKC automotive closed loop (page date not shown). https://www.railwayage.com/freight/class-i/cpkc-automotive-closed-loop/
10. Air Freight News, US Bureau of Transportation Statistics transborder freight data, 2025 annual report, March 17, 2026. https://airfreight.news/articles/full/transborder-freight-data-annual-report-2025
11. Kelley Drye, Tariff update: list of products covered by the autos tariffs. https://www.kelleydrye.com/viewpoints/blogs/trade-and-manufacturing-monitor/tariff-update-list-of-products-covered-by-the-autos-tariffs
12. ST&R, More details on tariffs on cars, trucks and auto parts, April 8, 2025. https://www.strtrade.com/trade-news-resources/str-trade-report/trade-report/april/more-details-on-tariffs-on-cars-trucks-and-auto-parts
13. ICPA, USMCA joint review automotive tracker, October 18, 2026. https://www.icpainc.org/usmca-joint-review-automotive/
14. Butzel, New Section 232 tariffs on trucks, truck parts and buses; auto tariff offset expanded, October 21, 2025. https://www.butzel.com/alert-new-section-232-tariffs-on-trucks-truck-parts-and-buses-take-effect-november-1-but-the-auto-tariff-offset-expanded-to-support-suppliers
15. ST&R, Section 232 tariffs on trucks and buses to take effect Nov. 1, October 2025. https://www.strtrade.com/trade-news-resources/str-trade-report/trade-report/october/section-232-tariffs-on-trucks-and-buses-to-take-effect-nov-1
16. Dickinson Wright, Summary of automotive provisions of USMCA. https://media.dwlaw.com/wp-content/uploads/2026/07/03153713/summary-of-automotive-provisions-of-usmca-1.pdf
17. EY Tax News, USTR finalizes Section 301 forced labor tariffs on 60 economies, July 2026. https://taxnews.ey.com/news/2026-1607-ustr-finalizes-section-301-forced-labor-tariffs-on-60-economies-additional-tariffs-of-10-percent-or-125-percent-take-effect-24-july-2026
18. White & Case, USMCA 2026 joint review: United States declines to extend agreement, July 2, 2026. https://www.whitecase.com/insight-alert/usmca-2026-joint-review-united-states-declines-extend-agreement-triggering-annual
19. Mexico Business News, Mexico's auto loans grow 2.6%, cover most new sales (AMDA data), August 15, 2025. https://mexicobusiness.news/automotive/news/mexicos-auto-loans-grow-26-cover-most-new-sales
20. Baker Donelson, Automotive trade risks escalate as USMCA review, Section 232 tariffs and AD/CVD actions converge, July 15, 2026. https://www.bakerdonelson.com/automotive-trade-risks-escalate-as-usmca-review-section-232-tariffs-and-adcvd-actions-converge

Trade values are US dollars from UN Comtrade at the 4-digit HS level unless a 6-digit line is named. Mexico and the US record the same shipments under different rules for value, country of origin and timing, so their figures differ. Percent changes compare 2025 with 2020. All facts on this page are as of October 23, 2026, the date of publication, and may have changed since. Rules and tariffs are as of October 23, 2026 and change often: check the corridor watch before you act.

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