The ceremonial start and public opening stage was held in front of massive crowds around the famous Zócalo square in central Mexico City.
"Wow! That's all I can say, really," Paddon said afterwards. "We knew it would be a special start to the rally but this atmosphere was something else.
"It was an amazing feeling to drive our Hyundai i20 Coupe WRC in front of these crowds and in such a fantastic venue.
"I am pumped for the rest of the weekend and hope that we can continue to put on a great show for all the Mexican supporters.
"Bring on the gravel stages."
The first full day of action sees drivers run through the famous high-altitude gravel stages in the mountains near the city of Leon.