Mexico car sales are growing, but its factories are making fewer vehicles

More people are buying new cars in Mexico this year, even as the country’s factories are making slightly fewer of them — a split that matters on both sides of the border.

Mexico sold more than 1 million new vehicles from January through August, up 4.7% from the same period last year, according to Mexico’s National Institute of Statistics and Geography, known as INEGI.

At the same time, Mexico produced about 2.65 million vehicles, down less than 1%, while exports were essentially flat at about 2.25 million vehicles.

And most of those exports are headed north.

About 76% of Mexico’s vehicle exports — more than 1.7 million vehicles in just eight months — went to the United States. 

That makes what happens in Mexico’s auto industry particularly important for the Rio Grande Valley and other border communities, where manufacturers, suppliers and transportation companies are part of the cross-border flow of vehicles and parts.

August continued the sales growth. Mexico sold 129,362 vehicles during the month, up 2.2% from August 2025.

Nissan and KIA show how different the market can be

The national numbers also hide major differences between automakers.

Nissan remained Mexico’s top-selling brand, selling nearly 173,000 vehicles through August. Sales were down only 1.5% from last year.

But Nissan’s Mexican factories saw a much steeper decline. Production fell 25%, from 454,644 vehicles to 340,683. Exports dropped 29%, from 291,456 to 207,019.

KIA went the other way.

Its sales in Mexico increased 2% to 73,273 vehicles. Production climbed 9.4% to 205,500, while exports increased 10.5% to 156,944.

The numbers show there isn’t one trend affecting every automaker in Mexico. Some are expanding production while others are cutting back.

What Reynosa dealerships are seeing

In Reynosa, Nissan representatives say the national decline isn’t necessarily what they’re seeing locally.

Jade Montserrat Cervantes Gallegos, Nissan marketing coordinator, said dealerships in her area, including Morelos and Río Bravo, had increased their market share by 26.5% through July.

Cervantes Gallegos said financing deals are one way Nissan is competing for customers. Promotions have included interest-free financing on the Versa, Sentra and V-Drive, depending on the offer and down payment.

At KIA Reynosa, sales agent Evelyn Solís said the K3 sedan is one of the vehicles customers ask about most. She pointed to its price and financing options as factors in its popularity.

Solís said KIA Reynosa also attracts customers from other cities and states, giving the dealership a customer base that stretches beyond Reynosa.