Mexico Truck Production Plunges 50% In February As US Exports Slow

By Noi Mahoney of FreightWaves

Mexico’s heavy-vehicle industry posted sharp year-over-year declines in production, exports and sales in February, signaling continued weakness across the country’s truck manufacturing sector.

Mexico’s National Institute of Statistics and Geography (INEGI) reported that 6,974 heavy vehicles were produced in February, a 49.1% decline compared to the same month in 2025. Exports also fell, with 7,849 units shipped abroad, a 32% drop year over year.

The declines also offer a window into the broader North American freight cycle. Mexico is a key production hub for tractor-trailers used by U.S. fleets moving goods across the U.S.-Mexico border. When freight demand softens or carriers delay fleet upgrades in the U.S., Mexico’s truck factories and export volumes often move in tandem.

Domestic demand also weakened significantly. Retail sales totaled 2,303 units in February, down 38.9% from a year earlier, while wholesale sales reached 1,836 units, a 27.3% decline compared with February 2025.

For the first two months of 2026, the industry produced 13,767 heavy vehicles, representing a 50.5% decline from the same period last year, while exports totaled 12,925 units, down 42.6% year over year.

Domestic truck demand continues long slide

Industry officials say the downturn reflects weakening demand in Mexico’s domestic trucking market, which has now posted more than a year of declines.

Cristina Vázquez, coordinator of economic studies for the Mexican Association of Automotive Distributors (AMDA), said the market has been in a prolonged contraction.

“With the results released today, we have accumulated 14 consecutive months of decline in the Mexican market in year-over-year terms,” Vázquez said during a news conference on Tuesday.

Retail sales in February totaled 2,303 heavy vehicles, nearly 39% fewer than the same month in 2025, reflecting a slowdown after record demand in 2024.

Vázquez said weakening investment trends are also weighing on truck purchases.

“The fixed gross investment indicator — particularly machinery and equipment — has been in negative territory for more than a year,” she said. “That sends a very relevant signal about confidence in the economic environment and the willingness of companies to invest in capital assets such as heavy vehicles.”

Production slump spreads across truck segments

Manufacturing declines were widespread across the heavy truck sector.

Of the 6,974 heavy vehicles produced in February, about 6,739 were cargo trucks and tractor-trailers, while 235 were passenger buses, according to figures presented during the news conference.

Cargo vehicles account for the vast majority of Mexico’s heavy-vehicle production, representing more than 97% of total output during the first two months of 2026.

Exports still dominated by U.S. market

Despite the sharp annual decline, exports rebounded slightly compared with January.

Mexico exported 7,849 heavy vehicles in February, up more than 50% from January, according to data from Mexico’s National Association of Bus, Truck and Tractor-Trailer Producers (Anpact).

Alejandro Osorio, director of public affairs and communication at ANPACT, said the month-to-month improvement offered cautious optimism.

“These are incipient but encouraging signs in the behavior of exports,” Osorio said during the news conference. 

However, exports remain significantly lower than a year earlier. The U.S. accounted for 91.3% of shipments in February, followed by Canada (5.7%) and Colombia (2.6%).

The 16 members of Anpact in Mexico are Freightliner, Kenworth, Navistar, Hino, International, DINA, MAN SE, Mercedes-Benz, Isuzu, Scania, Shacman Trucks, Foton, Cummins, Detroit Diesel, Daimler Buses Mexico and Volkswagen Buses.

Osorio said the industry is navigating a volatile global environment that continues to affect demand.

“The industry is facing a complex environment marked by adjustments in domestic demand and volatility in international markets,” he said. “Strengthening competitiveness and recovering the internal market will be key for the sector going forward.”

Freightliner was the top truck producer and exporter in Mexico in February, producing 5,538 trucks, a 32% year-over-year decline. The truck maker exported 5,264 units during the month, a 31% year-over-year decrease.

International Trucks Inc. was the No. 2 producer and exporter during February, manufacturing 307 trucks, a 91% year-over-year decrease. The truck maker’s exports fell 31% year-over-year to 2,251 units during the month.

Used truck imports cited as industry concern

Industry representatives also warned that rising imports of used trucks from the U.S. are undercutting new-vehicle sales in Mexico.

Osorio said the imbalance between new and used truck purchases has become a major distortion in the market.

“For every 100 new heavy vehicles sold in Mexico, about 64 used trucks enter the country,” he said, warning the trend is harming domestic manufacturers and transport companies. 

Older imported trucks also raise environmental and safety concerns, he added, because many units arriving in Mexico have already logged hundreds of thousands of miles in the U.S.

Industry outlook uncertain

Guillermo Rosales, executive president of AMDA, said the heavy-vehicle sector is facing multiple economic headwinds, including geopolitical uncertainty and fuel price volatility.

“We are living through a period of tariff volatility and also volatility in fuel prices derived from international conflicts,” Rosales said during the briefing. 

Despite the slowdown, Rosales said the industry expects demand to eventually stabilize as freight activity improves.

“The heavy-vehicle industry established in Mexico has historically relied on the recovery of both the domestic and external markets to return to normality,” he said. 

Industry leaders say the outlook for the remainder of 2026 will depend heavily on freight demand, investment trends and cross-border trade activity across North America.