Mexico’s heavy vehicle manufacturing sector experienced a dramatic slowdown in February, with production falling by nearly half compared with the same month a year earlier. The decline highlights broader weakness in freight demand, fleet investment, and cross-border transportation activity across North America.
According to data released by Mexico’s National Institute of Statistics and Geography (INEGI), truck manufacturers produced 6,974 heavy vehicles in February, representing a 49.1% year over year decline. The slowdown extended beyond factory floors, affecting exports and domestic truck sales as well.
Exports of heavy vehicles totaled 7,849 units, marking a 32% drop from February 2025. The decrease underscores how closely Mexico’s truck manufacturing industry is tied to freight demand in the United States, where trucking companies often delay new equipment purchases when freight volumes soften.
Mexico plays a critical role in the North American truck supply chain, serving as a major manufacturing hub for tractors and commercial vehicles used by carriers operating across the U.S. – Mexico freight corridor. When freight demand weakens or fleets postpone equipment upgrades, Mexican production lines often feel the impact almost immediately.
Domestic Truck Demand Continues to Slide
The slowdown is not limited to exports. Mexico’s domestic trucking market is also facing a prolonged period of contraction, reflecting reduced business investment and slower economic momentum.
Retail truck sales reached 2,303 units in February, a drop of nearly 39% compared with the same month last year. Wholesale sales also declined, totaling 1,836 vehicles, down 27.3% year over year.
Industry analysts note that this trend signals declining confidence among transportation companies and logistics providers when it comes to investing in new equipment. Cristina Vázquez, coordinator of economic studies at the Mexican Association of Automotive Distributors (AMDA), said the market has now experienced 14 consecutive months of year over year declines.
A key factor behind the slowdown is weaker fixed gross investment, particularly in machinery and equipment. When businesses scale back spending on capital assets such as trucks, trailers, and logistics infrastructure, demand for heavy vehicles quickly drops.
The slump becomes even clearer when examining the broader yearly figures. During the first two months of 2026, Mexico produced 13,767 heavy vehicles, a 50.5% decline compared with the same period in 2025. Exports during that timeframe totaled 12,925 units, representing a 42.6% year over year decrease.
Cargo Trucks Still Dominate Production
Despite the downturn, the structure of Mexico’s heavy vehicle industry remains largely unchanged. Cargo trucks and tractor-trailers continue to account for the overwhelming majority of production.
Out of the vehicles produced in February, 6,739 units were cargo trucks and tractors, while only 235 units were passenger buses. Freight vehicles represent more than 97% of total heavy vehicle output so far in 2026, reflecting the country’s strong focus on commercial transportation and cross border logistics.
This specialization has helped Mexico become one of the most important truck manufacturing centers in the Western Hemisphere, supplying equipment to fleets throughout the United States, Canada, and Latin America.
U.S. Remains the Dominant Export Market
Although exports declined year over year, they showed modest improvement compared with January, offering a small sign of stabilization.
Data from the National Association of Bus, Truck and Tractor Trailer Producers (ANPACT) indicates that February exports increased by more than 50% compared with the previous month.
Still, the United States continues to dominate Mexico’s truck export market, accounting for over 91% of shipments in February. Canada followed with roughly 5.7%, while Colombia represented about 2.6%.
This reliance on the U.S. market reflects the deep integration of the North American trucking and manufacturing ecosystem. Trucks assembled in Mexico are widely used by American carriers moving freight across interstate corridors and international supply chains.
Several major global manufacturers operate production facilities in Mexico, including Freightliner, Kenworth, International, Mercedes Benz, Scania, MAN, Isuzu, and Volkswagen Trucks and Buses, among others.
Among them, Freightliner remained the largest producer and exporter in February, building 5,538 trucks during the month. However, that figure still represented a 32% decline compared with the previous year.
International Trucks ranked second in production but experienced an even steeper decline, with manufacturing output dropping 91% year over year.
Used Truck Imports Creating Market Distortion
Another issue weighing on Mexico’s truck market is the growing influx of used trucks imported from the United States.
Industry leaders warn that the rising number of older vehicles entering the country is undercutting sales of new trucks and distorting the domestic market. According to ANPACT, for every 100 new heavy trucks sold in Mexico, approximately 64 used vehicles are imported from the U.S.
These trucks often arrive after accumulating hundreds of thousands of miles, raising concerns about vehicle safety, emissions standards, and environmental impact. At the same time, the lower purchase cost makes them attractive to smaller transport operators who cannot afford new equipment.
For manufacturers and dealers, however, the trend creates a significant challenge by reducing demand for new trucks produced in Mexico.
Outlook Depends on Freight Recovery
Looking ahead, industry leaders say the sector faces a complex economic environment shaped by global uncertainty, fuel price volatility, and trade dynamics.
Guillermo Rosales, executive president of AMDA, noted that fluctuations in tariffs and energy markets often influenced by geopolitical tensions are adding additional pressure on transportation companies and manufacturers.
Despite the current slowdown, analysts believe the industry’s long term prospects remain tied to the health of the North American freight market. As freight volumes recover and carriers begin replacing aging equipment, demand for new trucks could gradually return.
Historically, Mexico’s heavy vehicle industry has rebounded alongside improvements in cross-border trade, logistics activity, and investment in trucking fleets.
For now, however, the sector remains closely tied to the pace of freight demand, business investment, and supply chain activity across the United States, Mexico, and Canada factors that will largely determine how quickly truck production recovers through the remainder of 2026.
