Mexico Auto Industry Hits Record Sales in 2026
- Mexico sold 1,287,268 vehicles between January and October 2026.
- October 2026 sales reached 137,438 units, the strongest October since 2016.
- USMCA exports reached $62.2 billion, making Mexico a leading global supplier.
- Maruti Suzuki and Hyundai reported record monthly dispatches in October 2026.
- Tata Motors finalized an 89.42% stake acquisition in Iveco Group.
The automotive industry in Mexico maintained a trend of steady growth throughout 2026, according to the National Institute of Statistics and Geography. The sector sold 1,287,268 vehicles between January and October 2026, which represents a 4.8 percent increase over the same period in 2025 and establishes a new record for that timeframe.
The industry has recorded eight straight months of positive annual performance and is currently on pace to set an annual sales record for 2026.
October 2026 sales performance shows steady growth
New vehicle sales in Mexico reached 137,438 units in October 2026, marking a 3.1 percent rise compared to the same month in 2025.
USMCA trade agreement boosts Mexico export leadership
Mexico's automotive shipments reached a value of US$62.2 billion.
Eighty-three percent of these exports entered tariff-free under the USMCA, making Mexico the leading supplier ahead of Vietnam, China, and Canada.
Indian automakers report record domestic dispatches in October
Maruti Suzuki achieved its highest-ever monthly factory dispatches with 2,76,120 vehicles, a 25 percent year-on-year increase.
The company's domestic passenger vehicle dispatches grew approximately 20 percent to 2,12,384 units, while exports rose 59 percent to 49,872 units. Maruti Suzuki reported dealer inventory levels at 12 days and pending bookings of approximately 2.45 lakh units. The manufacturer sold nearly 87,000 CNG vehicles, representing about 40 percent of its domestic volume, and plans to increase CNG production capacity starting in January 2027.
Tata Motors Passenger Vehicles reported 75,426 total factory dispatches, a 23 percent year-on-year increase, with domestic passenger vehicle dispatches rising 21 percent to 73,894 units and combined EV dispatches rising 75 percent to 16,244 units.
VAHAN data showed October 2026 registrations of 2,11,444 units for Maruti Suzuki, 73,002 units for Tata Motors, and 64,248 units for Mahindra. Electric passenger vehicles accounted for 7.2 percent of the VAHAN-listed registrations in October 2026.
Tata Motors expands global footprint with Iveco acquisition
The company secured an 89.42 percent equity stake.
Tata Motors settled approximately 238.16 million shares of Iveco Group at €14.40 per share, making the company an indirect subsidiary. The combined enterprise expects to invest up to €1.5 billion annually in research and development.
Indian electric vehicle sector scales capacity and investment
Ather Energy plans to invest ₹122 crore to increase its annual production capacity by 2.25 lakh units across its Hosur and Chhatrapati Sambhajinagar facilities. The company aims for a combined capacity of 11.4 lakh units by the second quarter of the 2028 financial year.
Hero MotoCorp plans to expand its VIDA electric scooter manufacturing capacity to over 80,000 units per month by the second quarter of the 2028 financial year. This is an increase from the 30,000 units produced in September 2026.
Tata Motors is developing a midsize electric SUV, codenamed Kuno, which is expected to launch in 2027-2028. The vehicle could be produced at the Sanand facility in Gujarat with an annual target of 80,000 to 100,000 units.
The proportion of consumers actively considering an electric two-wheeler rose to 43 percent in 2026 from 30 percent in 2024. The rate of outright rejection for these vehicles fell from 38 percent to 29 percent during the same period.
Hyundai and JLR update Indian SUV and luxury portfolios
Hyundai Motor India launched the Bayon SUV starting at ₹9.99 lakh.
The company targets combined annual sales of 250,000 units for the Creta and Bayon models starting in 2027. Hyundai expects SUVs to reach 75% of domestic sales within 18 months, up from 67% in the second quarter of the 2027 financial year.
The Hyundai Venue SUV recorded 13,017 units in sales during October 2026.
Prices for the locally assembled range start at ₹99 lakh, with deliveries starting in November 2026.
Financial performance of major Indian automotive players
Net sales for the company increased by 26% to ₹50,616 crore as raw material and component costs rose by 48%.
The company also saw a 23% revenue increase to ₹14,971 crore. Ather Energy reported its first quarterly net profit of ₹1.26 crore in Q2 FY27, contrasting with a loss of ₹154 crore in the same period the previous year.
TVS Motor Company reported a 133% year-on-year increase in electric two-wheeler volumes to 1,86,186 units during the September quarter. A Boston Consulting Group report stated that five brands account for approximately 83% of India's electric two-wheeler market. This concentration persists despite a 30% increase in available models since 2023.
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