Overview
- In May 2026 Argentina’s auto production fell 21.5% year‑on‑year to 37,762 units, leaving January–May output down about 19.3% versus 2025, according to ADEFA.
- Argentine exports and factory shipments to dealers weakened with May exports at 25,237 units and wholesale deliveries at 35,979 units, leaving cumulative exports down 2.2% and wholesale deliveries down 23.1% for January–May.
- The national government has announced a phased removal of the 4.5% automotive export duty starting in July and ending within a year, and automakers are pressing provinces and municipalities to cut taxes they say add roughly 10% to an exported car’s value.
- Mexico recorded a historical high for light‑vehicle retail sales in May 2026 at 127,100 units, a 4.9% rise year‑on‑year, with industry bodies projecting about 1.67 million total sales for 2026 and Chinese brands gaining rapid market share.
- The region faces diverging dynamics: Argentine plants are adjusting product lines and retooling, raising short‑term job and output risks, while Mexico’s expanding demand and new entrants could shift production, trade flows and competitiveness under new tariff and content rules.