<p>In this study, we analyze whether establishments with foreign direct investment (FDI) in the transportation equipment manufacturing subsector in Mexico are more likely to implement environmental protection and conservation practices. We use data from 1204 establishments from the environmental module of the Mexico Economic Censuses 2019. Using a logit model, we estimate the probability that establishments in which automobile and truck manufacturing, motor vehicle body and trailer manufacturing, and motor vehicle parts manufacturing with FDI participation, in contrast to local establishments, adopt environmental practices. Our results show that establishments with FDI, compared with domestically owned establishments that produce automobiles and trucks and those that manufacture motor vehicle parts, are more likely to implement practices such as complying with environmental regulations, employing personnel dedicated to environmental protection, using recycled raw materials, recycling packaging, separating generated waste, treating wastewater, spending and investing in environmental improvements. Similarly, it was shown that the establishments of the transportation equipment manufacturing subsector located in the Bajío region, in contrast to those located in the central region of Mexico, are very active in applying environmental protection and conservation practices. These findings show that FDI in Mexico, in addition to influencing economic growth, applies good environmental management practices, indicating how this type of investment can contribute to sustainable development objectives and improve environmental responsibility in the transportation equipment manufacturing subsector. Additionally, the results of this study support the theoretical perspective of the pollution halo hypothesis (PHH), which holds that FDI contributes positively to the improvement and protection of the host country's environment.</p>