Mazda is reassessing its export strategy from Mexico as changing trade conditions and strict regional content rules under USMCA challenge its reliance on the US market. Miguel Barbeyto, President, Mazda Mexico, confirmed that both production and exports from the Salamanca plant are declining. “We are definitely seeing a drop in production and exports because our main customer is the United States,” Barbeyto told Expansión.
During 1H25, Mazda’s exports fell 28.5%, from 86,922 to 62,165 units, and production dropped 7.6%, from 119,539 to 110,432 units, according to INEGI. The facility previously sent 67% of its output to the United States, a flow now impacted by a 25% tariff. In contrast, Japan and the European Union face tariffs of 15% or less and are not bound by USMCA’s rules of origin, giving them an edge in cost flexibility.
The treaty’s rules require 75% of vehicle content to be regionally sourced and impose origin requirements on key components like engines and transmissions. “Mazda cannot wait three years to adjust its strategy,” Barbeyto said, referring to the agreement’s 2026 review.
The company is now targeting Latin America as an alternative market, like Argentina and Brazil, which are under evaluation. Mazda may expand Salamanca’s role, as Argentina’s ACE 55 trade agreement is being renegotiated. Brazil, a larger market, poses technical challenges due to its use of ethanol-powered engines, which Mazda has not yet developed.
Logistics also complicate this pivot. “In Latin America, there are no rail lines. All exports must go by ship and then by car haulers inland,” Barbeyto said, noting the higher costs and longer delivery times.
Besides Mazda, other companies showed a downward trend. Mercedes-Benz exports fell by 23.8%, Volkswagen’s by 21.3%, Stellantis by 20.4%, and BMW Group dropped 17.0%. Overall exports from the auto sector dropped 1.38% in the same period, totaling 1.95 million units, with 79.3% sent to the United States.
Some automakers, like Ford, are offsetting tariffs with higher prices, while Mazda is more cautious. “You can raise the price, but not enough to cover the entire tariff cost. Otherwise, nobody will buy,” he added.
The Salamanca plant was built primarily for US exports. Now, Mazda must maintain profitability while diversifying in Latin America, though this shift would be slower and less profitable. “There is currently a break-even point for the plant to stay profitable,” Barbeyto said, without specifics.
Japan remains the second-largest Asian investor in Mexico’s auto industry after China, with firms like Toyota, Honda, Nissan, and Mazda running production lines optimized over decades for the US market. The ongoing situation has sparked concern within Mexico’s broader automotive ecosystem, since much of the local supply chain produces parts for export-bound vehicles, especially those for Japanese manufacturers. Any shift in investment or export flows would have ripple effects across hundreds of local suppliers.
“Mexico competes with the European Union and with Japan in exporting vehicles because we have both European and Japanese plants here. The agreement we reach will be key to maintaining competitiveness,” said Rogelio Garza, President, AMIA. He confirmed that discussions between the Mexican and US governments are underway, but warned that “the worst-case scenario would be a tariff above 15%. That would directly impact the domestic industry.”
