Group 1: Tariff Changes and Impact - Mexico will raise tariffs on Light Vehicles (LVs) from 20% to 50% starting January 2026, affecting countries without a Free Trade Agreement (FTA) [1] - The most significant impact is expected on Chinese and Indian vehicle manufacturers, as sales of Chinese-made vehicles in Mexico have rapidly increased, accounting for 25.4% of total sales in 2025, up 4.6 percentage points from 2023 [2] - The tariff increase poses a challenge for Chinese OEMs, particularly in the Electric Vehicle (EV) segment, where affordability has been their main competitive advantage [3] Group 2: Affected Companies and Strategies - Indian manufacturers, especially Hyundai, Volkswagen, and Suzuki, will also be impacted by the tariff increase, with Suzuki expected to be more resilient due to its export strategy and recent land acquisition in India [4] - Strategies for OEMs to mitigate tariff impacts include inventory planning and cost absorption, with Geely indicating it will not raise prices to remain competitive [5] - Another strategy involves importing from countries with FTAs, such as Brazil, which allows tariff-free LV imports under certain conditions, despite not having a formal FTA with Mexico [7]