Tariff-Beating Mexican-Made Vehicles Sold in Canada

Many of the new vehicles sold in Canada have been manufactured in plants and facilities in Mexico for some time. Many Mexican-built cars are smaller and more affordable, aligning with Canadian consumer preferences.

However, the United States federal government imposed a 25 per cent tariff on foreign vehicles, including those from Mexico. In response, the Canadian government retaliated with duties on U.S.-assembled cars. This meant that Mexican vehicles meeting existing trade agreement standards are not subject to the tariffs that apply to American-made cars, making them a more attractive option for Canadian buyers. The result? For the first time in three decades, Canada has imported more passenger vehicles from Mexico than from the United States.

While drivers here have been more motivated than ever to buy Canadian-made cars, Mexican-made vehicles offer additional options and another way to skirt U.S. tariffs. Although this list is subject to change, here are the latest Mexican-made new vehicles currently available for sale in Canada.

Audi

The Q5 compact luxury SUV is Audi's best-selling vehicle in Canada. Given the current tariff situation, it’s only good news that the compact luxury SUV has been built in the German automaker's North American production hub in the town of San José Chiapa, located in the Mexican state of Puebla, since the facility’s opening in 2016.

The latest third-generation Q5 was introduced for the 2025 model year. The Mexican plant builds the standard Q5, the Sportback coupe SUV variant, as well as the performance SQ5 and the plug-in hybrid variants.

BMW

Audi’s rival, BMW, first built its 3 Series luxury sedan in Mexico between 1994 and 2003. The facility was a joint venture between BMW and a group of Mexican investors. However, in 2019, BMW returned to Mexico with its own manufacturing facility.

While some 3 Series models, such as the high-performance M3, are still built in Germany, the San Luis Potosi facility manufactures a trio of BMW models for the Canadian market: the 3 Series compact luxury sedan, plus the 2 Series and M2 compact sport coupes.

Looking forward, BMW has begun construction of a new Battery Module Production Center in Mexico, which will eventually manufacture its Neue Klasse battery-electric vehicles.

Chevrolet

Chevrolet, under its parent company General Motors, has been manufacturing cars in Mexico since 1935, when the automaker first established a presence in the country by assembling trucks from kits. Since that initial truck plant, GM has expanded its operations significantly, now operating three Mexican facilities: one in Silao, Guanajuato, another in San Luis Potosi, and a third in Ramos Arizpe, Coahuila.

New, Mexican-made Chevrolet vehicles sold in Canada include the Silverado light-duty and heavy-duty full-size pickup trucks, as well as the gas and electric versions of the Equinox and Blazer SUVs.

Ford

Ford has been manufacturing in Mexico for nearly a century, having established its Mexican subsidiary, Ford Motor Company, S.A. de C.V., in 1925. It was the country's first automotive assembly plant, located in San Lázaro, Mexico City, created to manufacture Ford's famous Model T. More recently, Mexican-made Fords have been smaller vehicles, such as the subcompact Ford Fiesta, which was last sold in Canada in 2019.

Today, four Fords sold in Canada are built in Mexico. They include the Maverick compact pickup truck and Bronco Sport compact SUV at Ford's Hermosillo facility, as well as the gas-powered Mustang coupe and convertible, and the battery-electric Mustang Mach-E at the automaker's Cuautitlán plant.

GMC

As it shares a platform with its Chevrolet Equinox corporate cousin, it's no surprise that the Canadian-market version of GMC’s Terrain compact SUV is built in the same GM San Luis Potosi facility in Mexico. In the past, this plant has produced a variety of GM vehicles, including some that Canadians will recognize, such as the Chevrolet Aveo and Trax, the Pontiac G3/Wave, and the Suzuki Swift+ subcompacts.

As for the GMC Terrain, it’s been built in the Mexican plant since 2017. The arrival of the new, third-generation 2025 model started production there in late 2024.

Honda

Currently, two Honda-badged vehicles sold in Canada are built in Mexico. But only one is made by Honda. Let us explain…

The Japanese automaker has been manufacturing cars in Mexico at its El Salto plant since 1985, starting with the Accord sedan. In 2012, the company opened a second plant in Celaya, where it currently builds the Canadian-market version of the HR-V subcompact SUV.

The second Mexican-made Honda is the new Prologue, a mid-size battery-electric SUV developed in conjunction with General Motors. This joint effort is why the Honda is built at GM’s Ramos Arizpe facility, alongside the electric versions of the Chevrolet Equinox and Blazer.

Infiniti

Nissan’s luxury brand is at a crossroads regarding its manufacturing presence in Mexico. Its Cooperation Manufacturing Plant in Aguascalientes (COMPAS) is jointly owned by Nissan and Daimler, Mercedes-Benz’s parent company. Mexican production of Infiniti vehicles began in 2017 with the QX50 compact luxury SUV, followed by the QX55 coupe SUV variant in 2021.

However, both Infiniti models are scheduled to stop production this year due to American tariffs on vehicles built outside the country. Infiniti recently debuted its QX65 SUV compact, which will replace the QX50/55 in the brand’s lineup. As the QX65 is being positioned as a more luxurious version of the Nissan Murano it’s based on, expect the new Infiniti to be made at the Murano’s American plant.

Jeep

The Stellantis facility in Toluca, Mexico, has been assembling various vehicles since 1968. You may recognize a few of the previous models, such as the Chrysler PT Cruiser, the Fiat 500, and the Dodge Journey.

Currently, the Toluca plant is producing two models for the Canadian market. These are the Jeep Compass compact SUV, which has been in production since 2017, and the new battery-electric Jeep Wagoneer S EV, which started rolling down the Mexican assembly line in late 2024.

Kia

Only about 20 per cent of Kias sold in Canada are made in the U.S., with the rest built in Korea, except for the all-new Kia K4, which is manufactured in Mexico.

Kia established its Mexican production presence by opening a plant in Pesquería, Nuevo León, in 2016. Just last year, the South Korean automaker celebrated producing its two millionth Mexican-made vehicle, the new K4 compact, which replaced the Forte previously assembled at the facility.

Mazda

Like Kia, Japan’s Mazda is a relatively new entrant in the Mexican vehicle manufacturing industry. Vehicles started rolling out of the Mazda de Mexico Vehicle Operation facility in Salamanca, Mexico, in 2014.

While the subcompact Mazda2 sedan and hatchback have also been produced in Mexico for the local market, today, the Canadian-market versions of the compact Mazda3 sedan and hatchback, as well as the Mazda CX-30 subcompact SUV, are manufactured at the facility.

Mercedes-Benz

Germany’s Mercedes-Benz has been building trucks and buses in Mexico since the late 1980s. However, it didn’t start producing cars for the North American market until the subcompact A-Class luxury sedan began being assembled in the joint Daimler-Nissan COMPAS facility in 2017.

When Mercedes-Benz discontinued selling the A-Class in the Canadian and American markets for the 2020 model, the Mexican plant began manufacturing the Mercedes-Benz GLB compact luxury SUV, which is still sold in Canada today.

Nissan

Nissan’s first plant outside its homeland of Japan began producing cars in Mexico as early as 1966. The factory in Cuernavaca, Morelos, initially built the Datsun Bluebird, which was sold as the 510 in Canada. The company has since expanded its operations significantly in the country, including the opening of manufacturing facilities in Aguascalientes and the establishment of export operations in 1972.

The Aguascalientes plant, located near the joint COMPAS facility, is responsible for producing a trio of models currently sold in Canada: the subcompact Versa sedan and Kicks SUV, and the larger Sentra compact sedan.

Ram

A second Stellantis brand, Ram, also produces vehicles in Mexico, at two separate facilities.

The Fiat Ducato-based Ram ProMaster van started production in 2013 at a dedicated new plant in Saltillo, Coahuila, Mexico. This plant, along with a second one in Saltillo, has been producing Dodge and Ram trucks since 1995. Notably, it is the exclusive plant for producing the Ram 2500 to 5500 heavy-duty full-size pickup trucks, including those powered by Cummins diesel engines.

For the 2026 model year, the plant will also be making all light-duty Ram 1500 trucks for the Canadian market.

Volkswagen

Mexico's largest automotive manufacturing facility is also one of the oldest in the country.

The construction of Volkswagen's plant in Pueblo, Mexico, was completed in 1967. The first model from the German automaker was the iconic Beetle, which continued to be built and sold in Mexico until 2003. This was followed by a variety of Mexican-built VW models, including the two generations of the modern Beetle, and the Golf and Jetta compacts.

Today, VW’s Puebla plant is the birthplace of Canadian-made versions of the Jetta sedan, the subcompact Taos, and the compact Tiguan SUVs.