Mexico’s nearshoring trend is gaining new strength in the heavy truck manufacturing sector, fueled by trade policies that push for regional integration. A recent move to impose a 50% tariff on Chinese vehicle imports is expected to significantly boost local automotive production and deepen Mexico’s role in the USMCA (T-MEC) framework.

According to key industry voices at the 23rd International Congress of the Mexican Automotive Industry (CIIAM), the growing need to replace Asian components will drive investment in domestic supply chains, accelerating the transition toward local content expansion.

Tariffs Fuel a Strategic Shift Toward Local Production

Raúl García, Chief Operating Officer at Mercedes-Benz Buses Mexico, emphasized that despite global trade uncertainties, nearshoring is far from slowing down in Mexico. On the contrary, the effort to substitute Chinese components with regionally produced ones is creating strong demand for domestic suppliers and encouraging technological investment in Mexican facilities.

“The need for production and component replacement is rising. What’s made in Mexico must transcend the label — it should become a technological investment,” García stated.

Growing Demand for Employee Transport

Nearshoring has also spurred demand in the corporate mobility sector, García added. As new plants open beyond urban centers, companies are increasingly relying on employee shuttle buses, a trend that has led to a 20–25% growth in demand for Mercedes-Benz’s personnel transport units.

This shift is not just logistical — it's structural, reflecting the spatial evolution of Mexico’s industrial development zones.

Government Strategy and Supplier Ecosystems

As part of the Plan México industrial strategy, the Mexican government is leveraging tariffs to combat dumping practices and to encourage North American production realignment. Mercedes-Benz already works with a network of 70 local suppliers, and García emphasized the importance of public policy support to strengthen these partnerships further.

“There’s a clear opportunity. If products once made in Asia are now needed locally, then investment in the Mexican supply base must follow,” he said.

North America Integration: PACCAR's Strategy

Representatives from PACCAR, the parent company of Kenworth and DAF, highlighted their continued commitment to nearshoring through fully integrated operations across North America. Their production model aligns with regional value chains, with 90% of trucks manufactured in Mexico exported to the U.S. — confirming Mexico’s role as a strategic production hub.

Elizabeth Gallardo, Government Relations Director at PACCAR, emphasized that regional integration has long been embedded in their business model, which is now being further strengthened through nearshoring.

Infrastructure: The Missing Piece

Valeria Moy, General Director of IMCO (Mexican Institute for Competitiveness), argued that nearshoring will only yield inclusive and sustainable growth if Mexico prioritizes investment in energy, water, and logistics infrastructure.

She cautioned that failing to address these deficiencies could leave critical nearshoring opportunities on the table, especially in high-growth sectors like automotive and heavy trucks.

Staying Ahead of Asian Competitors

García also underscored the need for a robust distribution network, after-sales services, in-house financing, and digital mobility solutions to maintain Mexico’s edge over Asian competitors. These elements, he said, will determine customer retention and long-term competitiveness in an increasingly digitized market.

However, he acknowledged that to fully embrace autonomous mobility and advanced vehicle technologies, Mexico must improve both its road infrastructure and regulatory frameworks.

Conclusion: Trucks Drive the Next Nearshoring Boom

As the automotive sector realigns globally, Mexico’s truck assembly industry is poised to benefit. Policy shifts like tariffs on Chinese imports, combined with growing regional demand, are creating new momentum for local manufacturing.

If the country can pair this with infrastructure upgrades and support for local suppliers, it will solidify its position as a heavy-duty vehicle production powerhouse in North America.