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Automotive

Kavak Teams Up with Hertz as BYD Accelerates in Mexico's Electric Car Race

October 2, 2026

“Kavak's expansion into the southeast and BYD's electric push set the pace of Mexico's auto market, while Nissan and Volkswagen play the price card and Tesla keeps its global aura.”

Summary

The announcement that shifted the automotive conversation this week came from Kavak. On September 2, the used-car platform confirmed its expansion into Mexico's southeast in alliance with Hertz México, a move that lets it combine its digital catalog of used vehicles with the logistics network of a global car rental company. The move is no small matter: it opens to Kavak a region where the used-car market has grown without the same digital infrastructure that already dominates the country's center, and it reinforces its position as the most dynamic player in the pre-owned segment at this moment.

Details

While Kavak makes its moves in the southeast, BYD keeps setting the pace in the electric conversation thanks to new launches and a commercial expansion that shows no sign of slowing, consolidating Mexico as one of its most active markets outside Asia. Nissan, for its part, continues to dominate for different reasons: price adjustments aimed at sustaining its weight in recent sales, and a defensive strategy against pressure from Chinese electric brands and used vehicles, which keep gaining ground month after month. Its own used-vehicle division, Nissan Seminuevos, reinforces that narrative with a broad inventory that draws on the trust the brand still enjoys among Mexican buyers. Volkswagen has taken a different route to compete: it announced used spare parts available at official service centers, a measure designed to lower repair costs in a context where maintenance expense has become a decisive factor when buying or keeping a car. Tesla, though without any striking local announcements, remains present thanks to the weight of the global conversation about electric vehicles and to the brand prestige that keeps attracting aspirational buyers in the country. On the corporate front, Ayvens, the new identity born from the merger of ALD Automotive and LeasePlan, continues to move as a relevant player in fleet management, while Avis Leasing keeps its corporate leasing offer visible, aiming directly at companies seeking alternatives to traditional vehicle purchases. Localiza also stands out, thanks to its corporate presence and a recent update for investors that reaffirms its bet on the Mexican market. And amid all this movement of large vehicles, Lime has reappeared, promoting micromobility in Mexico City and reminding us that the automotive conversation is no longer limited to four wheels, but also includes electric scooters and bicycles as part of the urban mobility solution.

Key Findings
  1. 1The announcement that shifted the automotive conversation this week came from Kavak.
  2. 2Its own used-vehicle division, Nissan Seminuevos, reinforces that narrative with a broad inventory that draws on the trust the brand still enjoys among Mexican buyers.
  3. 3Localiza also stands out, thanks to its corporate presence and a recent update for investors that reaffirms its bet on the Mexican market.
  4. 4Added to this is an increasingly sophisticated leasing and fleet ecosystem with Ayvens, Avis Leasing and Localiza, plus an additional layer of light urban mobility represented by Lime.
  5. 5The result is a market that no longer moves in a single direction, but is divided among electric innovation, the reinvention of the used car, and the corporate management of mobility.

Conclusion

What becomes clear after reviewing the full board is that Mexico's automotive sector is going through a transition on several fronts at once: used-car sales are professionalizing and expanding geographically thanks to alliances such as Kavak and Hertz, electric mobility is advancing hand in hand with BYD and Tesla, and traditional brands such as Nissan and Volkswagen are responding with pricing and maintenance strategies to avoid losing ground. Added to this is an increasingly sophisticated leasing and fleet ecosystem with Ayvens, Avis Leasing and Localiza, plus an additional layer of light urban mobility represented by Lime. The result is a market that no longer moves in a single direction, but is divided among electric innovation, the reinvention of the used car, and the corporate management of mobility.