Mexican EV Sales Surge While Domestic Production Faces Sharp Decline

Mexico’s automotive industry is experiencing a unique situation in its journey towards electrification. While the domestic market for electric vehicles has reached unprecedented levels, fueled by affordable Asian imports, the production of these vehicles for export to the United States has seen a notable decline.

According to the AMDA, sales of electrified vehicles, which include hybrid, plug-in hybrid, and fully electric models, increased by 46.5% year-over-year from January to July 2026. This growth resulted in record domestic sales of 112,313 units, up from 95,037 units in the first half of the year.

Electrified vehicles, often referred to as “green cars” in Mexico, accounted for 12.7% of total light-vehicle sales by July. This significant shift in the market is evident when compared to a decade ago, where such vehicles barely held 0.4% market share in 2016. Since then, sales have risen dramatically, with 27,662 units sold in 2021 and an 80.2% increase to 65,237 units in 2024, securing a 7.8% market share then. The trend continued with a 46.5% expansion in 2026.

“The arrival of new global automakers and Asian brands has broadened the range of prices and equipment, which adds to the rising cost of gasoline and electrification,” explained Guillermo Rosales, president of AMDA.

Domestic Market Trends and Brand Performance

Data from the INEGI reflects ongoing gains, with a 61.9% year-over-year increase in July 2026 alone. This marks the second-highest growth rate for July within the past decade.

Analyzing the first half of 2026, plug-in hybrid vehicles (PHEVs) saw the most substantial growth at 207%, driven predominantly by Chinese manufacturers, with 15,464 units sold. Fully electric vehicles (EVs) followed with a 47.5% increase to 13,768 units, while standard hybrids saw a 27.8% rise to 65,805 units.

Chinese automaker BYD has become a dominant force in Mexico’s market. AMDA data shows BYD sold 33,969 units in the first half of the year, representing 35.7% of the country’s low-emission vehicle market. BYD’s local lineup includes the Dolphin Mini among four battery-electric models and seven plug-in hybrids, priced between 399,000 and over 950,000 Mexican pesos.

BYD aims to sell 80,000 units annually in Mexico, potentially surpassing established brands like Ford and Honda. However, Urban Science analysts highlight the challenge posed by over 50 active vehicle brands in the country.

Other manufacturers have also made significant contributions:

• MG Motors: Sold 2,499 units in H1, primarily propelled by its ZS Hybrid+ SUV.
• KIA: Reported 2,212 units, anchored by sales of the Sportage Hybrid.
• Changan: Logged 475 units.
• General Motors: Delivered 235 units to the domestic market, led by the Chevrolet Equinox EV.

Top-selling luxury and premium electrified models in Mexico currently include Toyota’s hybrid Prius, Lynk & Co’s 08 plug-in hybrid, and Zeekr’s 07 battery-electric vehicle, according to AMDA rankings. Other Asian brands, such as Geely, Chirey, Jetour, Soueast, and GAC, have also expanded their footprint, alongside traditional OEMs like Toyota and Kia expanding their local hybrid offerings. Industry analysts point to price competition among brands and adoption by ride-hailing services such as Uber and DiDi as core drivers of volume.

The expansion of available options is supported by trade association metrics. The Electro Movilidad Asociación (EMA) reported that 170 electrified models are currently on sale in Mexico, comprising 110 battery-electric models and 60 plug-in hybrid or range-extended vehicles (PHEV-REEV).

“The electromobility ecosystem continues to develop in Mexico at an accelerated pace, with more models, manufacturers, and users who have verified the user experience offered by these new technologies,” the EMA stated in an official release. The organization noted that total market sales for these clean technologies surged 211.7% between 2021 and 2025, rising from roughly 47,000 units to more than 146,700 units annually, aided by expanded charging infrastructure, improved consumer awareness, and specialized financing options.

Geographically, domestic adoption remains concentrated in urban centers. Four federal entities account for 55.7% of national sales:

• Mexico City: 21,766 units
• State of Mexico: 12,736 units
• Nuevo León: 9,947 units
• Jalisco: 8,513 units

Production Slump and Export Headwinds

In stark contrast to domestic sales momentum, domestic manufacturing of electric vehicles dropped sharply over the same timeline. According to data from the AMIA and Inegi, Mexican EV production destined almost entirely for foreign export plunged 57% during the first half of 2026.

Mexican assembly plants produced 47,411 electric vehicles in the first six months of 2026, down from 110,002 units assembled during the same period in 2025. Industry analysts attribute the slowdown to a pullback in purchasing demand across the United States, the primary export destination for Mexican-made vehicles.

The decrease affected major American OEMs operating in Mexico, including General Motors, Ford, and Toyota:

• Chevrolet Equinox EV (GM): Assembly at Mexican facilities fell 81.6%, declining from 38,995 units in H1 2025 to 7,185 units in H1 2026.
• Chevrolet Blazer EV (GM): Assembly fell 80%, dropping from 10,469 units in H1 2025 to 2,099 units in H1 2026.

Mexico’s role as an electric vehicle manufacturing hub for the North American market began in 2020 with Ford, later expanding to include General Motors, Toyota, and Stellantis. While production grew steadily alongside U.S. consumer purchasing incentives, recent demand deceleration in North America has forced OEMs to scale back assembly schedules, creating a dual-track market where Mexican factory floors slow down even as domestic dealership sales reach record highs.