Saturday, October 18, 2025

Mexico’s week in review: Flood recovery and booming electric vehicle exports

This week, Mexico grappled with a devastating natural disaster, security challenges and diplomatic tensions. From deadly floods that claimed dozens of lives to mounting U.S. pressure on Mexican politicians, the period between October 13 and 17 highlighted the complex issues confronting President Claudia Sheinbaum’s administration. Meanwhile, business milestones, a controversial legal reform, cultural celebrations and environmental initiatives offered a window into the country’s progress and resilience.

Didn’t have time to read every story this week? Here’s what you missed.

Natural disasters devastate Mexican communities

This week marked the first stage of recovery after catastrophic flooding ravaged five central and eastern states. By week’s end, the death toll had climbed to 72 people with 48 officially declared missing, while 127 towns remained virtually inaccessible. Veracruz bore the brunt with 32 deaths, followed by Hidalgo with 21 and Puebla with 18.

The government unveiled a tracking website showing 12,350 emergency responders deployed with 30 helicopters and 681 heavy machinery units. At Friday’s press conference, Sheinbaum praised the “heroism” of approximately 52,000 federal and state workers responding to the crisis. However, she faced criticism from angry residents during a visit to Poza Rica in Veracruz, where fetid water remained ankle-deep and concerns about typhoid and cholera spread. Veracruz Governor Rocío Nahle drew particular criticism after reports emerged that she had canceled the state’s natural disaster insurance policy.

Puerto Vallarta experienced its own crisis when a nine-hour storm flooded more than 1,000 homes, claiming one life. The city also mourned the sinking of the Marigalante pirate ship following a bilge pump failure.

Business and economic developments

Mexico achieved a significant milestone, becoming the leading exporter of electric vehicles to the United States, exporting approximately 145,000 EVs last year and surpassing Japan and South Korea. Production through September 2025 reached 214,203 units, a 39.3% increase year-over-year.

Mexico is now the leading exporter of electric vehicles to the US, surpassing Japan and South Korea 

Chinese investment continued as Shanghai-based Yongmaotai announced a $63 million auto parts plant in Coahuila. Mexico’s first green hydrogen plant opened in Querétaro, a partnership between German company Gerresheimer and Mexican company Cryoinfra requiring 100 million pesos ($5.3 million) in investment. The plant will produce 500 cubic meters of green hydrogen daily, reducing CO₂ emissions by 100 tons annually.

Mexico’s Energy Ministry forecasts that 96% of private-sector energy investment will go toward renewables between 2025 and 2030.

Tourism faced challenges as Tulum’s hotel occupancy dropped sharply, falling 17.5 percentage points in September to 49.2%, a drop attributed to high prices and increasing amounts of sargassum seaweed washing ashore on local beaches.

Cartel violence costs lives and stifles growth

Violence and organized crime remained pressing concerns. Authorities confirmed the discovery of 60 bodies at a clandestine burial site near Hermosillo, Sonora, with the Sonora Peace Seekers collective uncovering the remains between January and February. Five suspects have been arrested.

A drone attack targeted a Mexican government office in Tijuana on Wednesday night, with cartels deploying three drones carrying improvised explosive devices filled with nails and metal pieces. The attack damaged cars at the state attorney general’s anti-kidnapping unit but caused no casualties. The U.S. Consulate issued a security alert following the incident.

In Mexico City, prominent lawyer David Cohen Sacal was shot dead outside a courthouse on October 14, attacked at point-blank range by an 18-year-old assailant.

Sinaloa foreign direct investment plummets amid cartel turf war

The U.S. Department of Homeland Security raised alarms about Mexican cartels supposedly offering bounties of up to $50,000 for attacks on U.S. federal agents. At Wednesday’s press conference, Sheinbaum said the U.S. hadn’t provided Mexico with any evidence related to the alleged bounty program.

Violence in Sinaloa took its economic toll as foreign direct investment plummeted 87% during the first six months of 2025, shrinking from $262.8 million to $34.3 million.

Mexico-US diplomatic tensions

Relations between the two nations showed strain when Reuters reported that more than 50 Morena-affiliated politicians have had their U.S. visas revoked, with the total potentially exceeding 70. Former U.S. ambassadors suggested the Trump administration is using this tool more aggressively on drug trafficking and corruption issues.

New laws and institutional changes

Congress approved a major reform to the Amparo Law, with supporters claiming it will release over 2 billion pesos ($108 million) in tax credits. At Thursday’s press conference, Sheinbaum dismissed Fitch Ratings’ concerns that the reform could dampen investment.

The Chamber of Deputies raised fees on tourist and residency visas, with some residency permits more than doubling in cost. A one-year temporary residency visa will rise from 5,328 pesos ($290) to 11,140 pesos ($606), while permanent residency will climb from 6,494 pesos ($353) to 13,578 pesos ($738). The legislation also doubles admission fees to priority museums and archaeological sites and raises taxes on soft drinks, electrolyte beverages, tobacco and casino gambling.

In a cybersecurity revelation, U.S. researchers found that much Mexican satellite data is unencrypted. Computer scientists intercepted unencrypted communications from Mexican government agencies, the military, and companies using $600 worth of equipment. At Friday’s press conference, Defense Minister Ricardo Trevilla insisted all military communications are encrypted and denied evidence of data interception.

Congress’s lower house raises fees on tourist and residency visas

The Bank of Mexico also began withdrawing the blue 20-peso bill featuring President Benito Juárez after nearly 20 years in circulation.

Nuevo León Governor Samuel García inaugurated the first phase of the $1.2 billion Interserrana Highway, which will reduce travel times from southern Nuevo León to Monterrey from five hours to three.

Cultural highlights

Even as the country struggled with natural disasters and security problems, Mexico’s cultural scene flourished both at home and abroad. Stars gathered at the 23rd Morelia International Film Festival, featuring Brazilian filmmaker Kleber Mendonça Filho, French actress Juliette Binoche, and Oscar-winning writer Charlie Kaufman.

Former Mexico City street sweeper Macario Martínez performed on NPR’s “Tiny Desk Concert,” eight months after his viral sensation “Sueña Lindo, Corazón” captivated social media.

Mexican cyclist Isaac del Toro claimed victory at the Giro del Veneto, his 16th title of 2025. The 21-year-old now ranks third in UCI world rankings.

Finally, archaeologists announced the discovery of a rare 1,400-year-old scorpion-shaped mound in Puebla’s Tehuacán Valley, described as “unprecedented” in Mesoamerica and possibly used as an astronomical observatory.

Archaeologists discover rare scorpion-shaped mound likely used for solar observation

Wild Mexico

Mexico’s unparalleled natural biodiversity was on display as three iconic species made headlines this week. Gulf of California whales are suing for their right to a livable habitat, a potentially groundbreaking lawsuit allowing non-human plaintiffs (the charges were filed on behalf of the whales by the NGO Nuestro Futuro). Monarch butterflies began their annual migration to Mexico, expected to reach Michoacán and México state by early November.

And in Oaxaca, a jaguar cub named Yazu was born at the Yagul Jaguar Sanctuary, the first birth produced via the Jaguar Genetic Bank project, offering hope for the threatened species.

Looking ahead

Mexico faces a critical juncture as it navigates intersecting crises: The flooding disasters exposed infrastructure vulnerabilities requiring sustained investment. Sheinbaum’s government must balance disaster response with security challenges and increasingly complex U.S. relations. Meanwhile, critics say recent legal reforms could undermine average citizens’ access to justice. Yet amid these difficulties, Mexico’s surging EV exports, renewable energy leadership, cultural achievements and environmental conservation efforts demonstrate resilience and adaptability that may prove crucial for navigating the uncertain times ahead.

Mexico News Daily


This story contains summaries of original Mexico News Daily articles. The summaries were generated by Claude, then revised and fact-checked by a Mexico News Daily staff editor.

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News quiz

The MND News Quiz of the Week: October 18th

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Soccer stars, silver screens and sinking ships: Have you been paying attention to the headlines this week?
Anthropology Museum

Congress’s lower house raises fees on tourist and residency visas

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The fee hike on foreigners is accompanied by higher entry prices for everyone to museums and archaeological sites, and tax boosts on soda and electrolyte drinks.
A baby jaguar cub sits in dappled sunlight

Oaxaca sanctuary welcomes Yazu the jaguar cub, a sign of hope for the species

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The one-month-old kitten can look forward to spending his early years in a nature simulator with no human contact, learning enough about survival in the wild to eventually be released.
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