Mexico auto sales dip in 2025, but Reynosa dealers report strong demand

New light-vehicle sales in Mexico slowed in 2025, while demand in border cities such as Reynosa remained strong, driven by SUV purchases, financing incentives, and steady growth in the used-vehicle market, according to national data and local dealerships.

At the national level, cumulative new-vehicle sales fell 6.4% between January and September 2025 compared with the same period in 2024, according to the SIM Index prepared by SimDataGroup in collaboration with the Mexican Association of Automotive Dealers and based on data from Mexico’s National Institute of Statistics and Geography. The steepest declines were recorded in April, down 19.1%, and August, down 15.9%.

The index also reported that new vehicles remained in inventory an average of 42.6 days, a level similar to the pre-pandemic period and one analysts link to slower turnover and cooling demand.

By contrast, the used-vehicle segment showed greater stability. Average used-vehicle sales rose 2.5% during the January–September period compared with 2024, with lower volatility than in the prior year, according to the same report.

Reynosa outpaces national trends

Local data and dealership interviews suggest Reynosa is outperforming national averages.

According to the Asociación Fronteriza de Distribuidores de Automotores, A.C., Reynosa recorded 9,900 vehicle sales in 2025, a 13.1% increase from the 8,753 units sold in 2024.

At Kia Reynosa, marketing coordinator Lilia Shannon Guel Collins said the local market showed consistent growth throughout the year, with a notable surge in the final quarter.

“Sales have been growing, and in the last quarter they surged,” she said. “Anyone who says there’s a recession — the truth is, there isn’t. There’s no recession, no economic problem. People are looking to buy cars.”

Guel Collins estimated that the dealership closed 2025 with growth of between 20% and 25% compared with the previous year, selling more than 900 new vehicles.

She said the Kia K3 Sedan and K3 Hatchback were the dealership’s top-selling models. Both are manufactured in Pesquería, Nuevo León.

“The Kia K3 Sedan and K3 Hatchback, which are manufactured in Mexico in Pesquería, Nuevo León, are positioned as the safest vehicles in their segment globally,” Guel Collins said, noting that both models earned five-star ratings in Latin NCAP safety tests evaluating adult and child protection and frontal, side, and rear impacts.

In the SUV segment, she cited strong demand for the Seltos and Sportage, describing the Sportage as “highly sought after and well positioned in customers’ minds.”

Vehicle availability has largely normalized, she said, after pandemic-era disruptions.

“There were waiting lists of several months — almost a year in some cases — due to plant shutdowns or reduced operations at manufacturers and suppliers. Today, waiting times are back to normal,” she said.

Financing and used vehicles support sales

Guel Collins said financing terms and trade-in programs have played a central role in sustaining demand.

The most common loan term among customers is five years, she said, though about 30% opt for 36-month financing. The dealership promotes in-house financing, including a 5.99% preferential rate for repeat customers, subject to commercial conditions.

“Used-vehicle sales surged compared with 2024,” Guel Collins said.

On average, the dealership sold between 18 and 24 used vehicles per month, in addition to new vehicles. Trade-ins are processed as a single transaction, with the vehicle’s value applied toward the down payment on a new unit.

Nissan sees informed buyers, SUV growth

At Nissan Reynosa, marketing coordinator Carey Lara described 2025 as a competitive year marked by the arrival of new brands, particularly Asian automakers, but said results were positive.

“Customers now come in informed,” she said. “They arrive having done their research on social media — versions, features, and promotions.”

Lara estimated that the dealership sold more than 850 new vehicles during the year, with SUV demand rising sharply following redesigns of models such as the Kicks and the introduction of the Magnite compact SUV.

Interest in used vehicles has grown to the point that Nissan Reynosa now operates a dedicated used-vehicle location, she said.

Vehicle supply has remained stable, with delivery times typically ranging from 15 to 20 days if a unit is not already on the lot.

In financing, the dealership offers terms of up to 72 months to lower monthly payments and aims for 60% credit penetration, primarily through in-house financing.

“There’s a positive outlook for 2026 after a strong close to 2025,” Lara said, while noting uncertainty tied to tariffs and their potential effects on the market.

Consumer perspective

For buyers, factors such as vehicle height, comfort, financing terms, and maintenance costs remain key considerations.

Leopoldo Piñones, a customer at Mazda Reynosa, said he purchased a 2026 Mazda CX-30 in 2025 after comparing multiple dealerships.

“We went with it based on other people’s comments and recommendations that it was a very good vehicle,” he said.

Piñones said the vehicle’s higher ride height was especially important given local road conditions, and that the financing structure allowed for a manageable monthly payment.

He also cited maintenance costs as a deciding factor. The first service at around 10,000 kilometers is expected to cost approximately 2,500 pesos, or about $134, compared with more than 5,000 pesos, or roughly $270, he previously paid with another brand.