Motorcars first arrived in Mexico City in 1903, and since then several vehicle brands have been especially successful. A number of manufacturers make vehicles in Mexico, and may brands have been and continue to be available.
History
Early years (1903–1960) In 1903, motorcars first arrived in Mexico City, totaling 136 cars in that year and rising to 800 by 1906. This encouraged then president Porfirio Díaz, to create both the first Mexican highway code (which would allow cars to move at a maximum speed of 10 km/h or 6 mph on crowded or small streets and 40 km/h or 25 mph elsewhere) and, along with this, a tax for car owners which would be abolished in 1911 with Francisco I. Madero's successful campaign against Díaz's presidency at the outbreak of the Mexican Revolution. In 1910, Daimler and Renault both established small facilities for the local assembly of vehicles primarily for the Mexican government at the behest of Porfirio Díaz, but these functioned for little more than a few months before being destroyed in the Mexican Revolution. A short time after the end of the armed struggle, Buick became the first automobile producer to be officially established in Mexico, beginning in 1921. In 1925, Ford Motor Company was established and began manufacturing vehicles in the country, and, as of 2020, remains the longest-running brand in the country. In 1961, Mexico produced its first fully domestic vehicle, a small truck called the Rural Ramírez, produced by the Ramirez truck company.
Decline (1961–1993) Many car makers were already operational by 1961 when the first decline of the Mexican economy showed up. In the early 1960s, government regulations forced car companies to assemble cars in Mexico, using local as well as imported components. The idea was to develop a national car industry in the country, to promote employment and technological advances. Those companies that would not comply with these regulations left the country; these included Mercedes Benz, FIAT, Citroën, Peugeot and Volvo. The American Big Three (General Motors, Ford and Chrysler) remained along with American Motors, Renault, Volkswagen, Datsun and Borgward.
In this same year, due to the announcement of the upcoming 1968 Summer Olympics to be held in Mexico, the Government reissued Diaz's car ownership tax, purportedly to afford the construction of new facilities for such an event; this was named the Tenencia Vehicular (from the verb tener; "to have" in Spanish). However, the tax remained to finance the 1970 FIFA World Cup, also held in Mexico. Ironically, the tax remains today in most states, and it must be paid year after year. This tax is variable depending on the car's value, number of cylinders, type of transmission, air conditioning and further features, adding up to a payment of up to 10% of the car's total value.
A second tax exists as well when purchasing a new vehicle called Impuesto sobre Automóviles Nuevos or ISAN ("Tax on new cars"), also depending on a vehicle's specifications and cost. Unlike the Tenencia, this tax is paid only once. Federal law requires all listed car prices in media or dealerships to have the standard 16% VAT tax and ISAN included in the listed price.
Since many Mexican drivers default on paying this tax, the Government started taking countermeasures. However, due to this being perceived as uncontrollable, politicians started making proposals to abolish this tax, remarkably Felipe Calderón. Tenencia has, as of 2011, only been abolished in Querétaro. On 4 March 2011, President Calderón announced Tenencia will be completely abolished by 2012 in all states, but not in the Federal District which comprises most of Mexico City.
Rebirth (1994–2006) The growth of Mexico's economy during the late '90s stimulated car sales in Mexico and, eventually, most of the retired carmakers re-established themselves in the country. Makers such as Honda and Porsche arrived for the first time during the last years of the 20th Century, and others such as Peugeot and Mercedes-Benz gave Mexico a "second chance", both re-establishing in 1997.