Mexico plans to increase 15% domestic content in the automotive industry by 2030, highlighted President Claudia Sheinbaum

In an event held at the Museum of Anthropology, Sheinbaum also set the goal of increasing 10% automotive production in the country for domestic consumption.

Both measures were announced as part of Plan Mexico and in the context of the United States imposing a 25% tariff on imports of cars and light trucks originating from Mexico and Canada that do not comply with the trade agreement between the three countries (USMCA).

Domestic content in the automotive industry

Shortly before, in a conference at the National Palace, Marcelo Ebrard, Secretary of Economy, informed that 84% of Mexico’s automotive exports comply with the rules of origin of the USMCA and therefore are not subject to tariffs.

Sheinbaum stated that her administration intends to strengthen and expand domestic manufacturing for the domestic vehicle market, strengthening innovation, research and development, as well as energy efficiency.

As background, on January 13, Sheinbaum presented Plan Mexico. This strategy of the Federal Executive seeks equitable and sustainable economic development to achieve shared prosperity. 

Olina

Sheinbaum established as another objective that the best-selling cars in Mexico should be produced in Mexico. 

In particular, the President referred to the Olinia project, which is a Mexican government initiative that seeks to develop and produce all-Mexican mini electric vehicles. Its plant will be located in Puebla.

Sheinbaum’s projections are for Olinia to start production in 2027 with 10,000 units and reach 25,000 units in 2028.