itional 25% tariff on automobiles and auto parts will be reduced by half to 12.5%, resulting in a combined tariff of 15% when combined with the existing 2.5% tariff. While tariffs on automobile imports from Japan will be reduced to 15%, tariffs on imports from Mexico and Canada that do not meet the USMCA (United States-Mexico-Canada Agreement) rules of origin will remain at 25%, and the American Automotive Policy Council (AAPC), made up of the Bi...

Market & Tech Reports  Updated at: 2025/07/28

lobal 2025 LV production outlook. Since our Q1 2025 report, we have cut the full-year outlook for 2025 by almost 1.5mn units to 91.0mn. Measured against a relatively weak 2024, annual growth is now anticipated to reach just +0.6% YoY - a downgrade of almost 2 pp from our earlier view. -The entwined USMCA auto supply industry structure means that the tariff impact is most focused in North America, which accounts for over half of our 1.5mn unit cut...

Market & Tech Reports  Updated at: 2025/07/28

the first half of a calendar year. Looking to 2026, we expect volumes to decline by around 0.7% YoY to 15.1 mn units. Similarly to 2025, we assume that the tariffs will have the most negative impact in the first six months, before an improvement later in the year. A successful renegotiation of the USMCA trade agreement and trade deals with other countries could lower tariff rates from mid-2026 onward. This could then lead to a recovery in sales,...

Market & Tech Reports  Updated at: 2025/07/28

previous year, raising concerns about economic instability.   The Trump administration imposed a 25% tariff on Mexican products in March after a one-month grace period from its original declaration in early February 2025, but immediately afterwards deferred the tax on U.S.-Mexico-Canada Agreement (USMCA)-compliant goods. The grace period continues even after the early April deadline for negotiations with Mexico. Export from Mexico (by dest...

Market & Tech Reports  Updated at: 2025/07/11

of additional tariffs by the Trump administration, the most impactful on the automotive industry is the additional 25% tariff on automobiles and automotive parts based on Section 232 of the 1962 Trade Expansion Act. The additional tariff came into effect on April 3.   If the rules of origin of the USMCA (United States-Mexico-Canada Agreement) are met, the additional 25% tariff on automobiles and automobile parts under Section 232 will be levied ...

Market & Tech Reports  Updated at: 2025/05/02

e exceptions – that is only because the industry is already covered by other, more specific, tariffs. On April 3, 25% tariffs were imposed on imports of finished vehicles. While this applies to all countries, vehicles from Canada and Mexico that are compliant with the United States-Mexico-Canada (USMCA) trade agreement rules are subject to taxes only on their non-US content. US content is defined as “the value of parts wholly obtained, produc...

Market & Tech Reports  Updated at: 2025/04/30

es, but also on the supply chain of the entire automotive industry. In particular, the additional 25% tariff on automobiles and auto parts that took effect on April 3 covers all non-U.S.-made products, and non-U.S. component prices are subject to the tax even if they meet the rules of origin of the USMCA (U.S.-Mexico-Canada Agreement). This will have a major impact not only on foreign OEMs from Japan, Korea, Europe, etc., but also on American aut...

Market & Tech Reports  Updated at: 2025/04/25

d the expansion of its Saltillo Plant. In early 2025, the company will launch a new Ram-branded vehicle to be produced at the Saltillo Plant. However, there are many challenges ahead in 2025, including tariff concerns under the Trump administration and amendments to the United States-Mexico-Canada (USMCA) trade agreement. South America On March 6, 2024, Stellantis announced its investment plans for South America totaling BRL 30 billion from 202...

Market & Tech Reports  Updated at: 2025/03/05

nd national security implications and risks resulting from such deficits; a decision related to the creation of an "External Revenue Service" to collect tariffs; identification of unfair trade practices; and a review of existing trade agreements, including the United States-Mexico-Canada Agreement (USMCA). The 25% tariffs on Mexico and Canada could go into effect as early as February 1st. In addition, a series of policies were announced that coul...

Market & Tech Reports  Updated at: 2025/01/24

h the tax deduction (up to USD 7,500) for the purchase of electric vehicles under the Inflation Control Act (IRA), and impose additional tariffs of 25% on Canada and Mexico, which currently have zero tariffs, and 10% on China under certain conditions under the United States-Mexico-Canada Agreement (USMCA).   With the transition to EVs stalling in Europe as well, automakers are reviewing their EV strategies. A change in policy in the U.S. could h...

Market & Tech Reports  Updated at: 2024/12/27

ed corporate taxes, and new tax credits for auto loan payments will help manufacturers and consumers, and eventually revive the auto industry. The United States will notify Mexico and Canada of its intention to invoke the sixth-year renegotiation clause of the United States-Mexico-Canada Agreement (USMCA) to prevent China from producing automobiles and parts in Mexico and exporting them to the U.S. duty-free. The revitalization plans include larg...

Market & Tech Reports  Updated at: 2024/12/26

Trump Speech in Detroit U.S. auto industry, tariffs, electrification, etc. Summary Auto Industry Tariffs USMCA renegotiation and Chinese auto plants in Mexico Electric Vehicles Tax cuts Energy   On October 10, 2024, Republican presidential hopeful Donald Trump spoke to the Detroit Economic Club, where over 1,000 members and their guests came to see him at the MotorCity Casino Hotel in Detroit.   Trump said under his administration, “Thousands...

Market & Tech Reports  Updated at: 2024/10/24

ntries) and "nearshoring" becoming more prominent. In this environment, Mexico's advantages as a manufacturing hub increased, as it is a friendly country adjacent to the U.S. with low labor costs and zero tariffs as long as certain conditions are met under the United States-Mexico-Canada Agreement (USMCA). Coinciding with the trend toward the introduction of new EVs, there have been a series of announcements and reports of plans to renovate exist...

Market & Tech Reports  Updated at: 2024/06/14

lding a plant in Mexico not only reduces transportation costs, but also offers advantages such as shorter delivery times, lower inventory costs, and shorter working capital turnover periods.   Mexico is a member of the North American Free Trade Area under the United States-Mexico-Canada Agreement (USMCA) and enjoys zero tariff treatment on exports to the United States.   Mexico has dozens of free trade agreements, promotion and protection of in...

Market & Tech Reports  Updated at: 2024/05/29

hrough 2026.   Production in China in 2022 was 1.8 million units, its recent maximum volume there, however will decline in 2023 and hover around 1.5 million units between 2024 and 2026.   Production in USA will grow gradually through 2026 and will be 1.3 million units in 2026.   As for other two USMCA countries, production in Canada will stay under 500k units through 2026, however production in Mexico in 2026 will be 462k units, up by 72.7% fr...

Market & Tech Reports  Updated at: 2023/07/14

gnition of recent supply chain risks due to the COVID-19 crisis and semiconductor shortages, and Mexico, as a neighboring country in North America, has become more advantageous as an investment destination for "near-shoring" (production closer to the consumption area) to prepare for such risks. The USMCA (U.S.-Mexico-Canada Agreement), which was agreed to in 2020, has been a point of contention over the no-tariff requirement, but against the back...

Market & Tech Reports  Updated at: 2023/04/24

new cars have MTs (manual transmissions) and there are no CVTs (the temporarily existing Audi chain transmission CVT has phased out), while DCTs that can use MT design know-how and production equipment are produced to the same extent as ATs. Going forward, as emphasized in the transition NAFTA → USMCA, local production is strongly required. In this respect, ATs lag behind many other components and this could be problematic.  An increasing num...

Market & Tech Reports  Updated at: 2023/03/09

e regulation will be fined up to USD 20,000 per vehicle for each vehicle that fails to meet the regulation. Related Reports: Electric Vehicle (EV/PHV/FCV) Sales Monthly Report (August 2022) (Sep. 2022)WCX 2022 (2) Electrification development speed creates concerns in maintaining pace (May. 2022)The USMCA and the Mexican Automotive Industry (Apr. 2022)U.S. Emerging EV Automakers: Rivian goes to volume production following Tesla (Feb. 2022)CES 2022...

Market & Tech Reports  Updated at: 2022/10/05

ance. In addition, this report includes LMC Automotive's global sales forecast for the Stellantis Group. Related reports:Stellantis (Part 1): 75 BEV Models by 2030, Aiming for 5 million Annual BEV Sales (Jul. 2022)Impact of the Russian-Ukraine War on the Automotive Industry in Europe (May. 2022)The USMCA and the Mexican Automotive Industry (Apr. 2022)CES 2022: Major OEMs accelerate electric vehicle push (Feb. 2022)U.S. battery electric vehicle st...

Market & Tech Reports  Updated at: 2022/08/10

ecent developments, and announced plans. Part 2 of the report will present related investment activities and sales in key markets, as well as Stellantis’ global sales forecasts by LMC Automotive. Related reports:Impact of the Russian-Ukraine War on the Automotive Industry in Europe (May. 2022)The USMCA and the Mexican Automotive Industry (Apr. 2022)CES 2022: Major OEMs accelerate electric vehicle push (Feb. 2022)U.S. battery electric vehicle st...

Market & Tech Reports  Updated at: 2022/07/22