Spectators watched the match on a big TV screen in the central Zocalo square and after the game, they converged around the iconic Angel of Independence monument waving Mexico flags.
Germany coach Joachim Loew had taken a "B" side to the tournament, which was considered a dress rehearsal for the World Cup, and that show in Sochi was a validation of the world champions' strength in depth. Find out by following our live matchcast.
France in 2002 and Spain in 2014 were the other defending champions to lose their opening matches.
The blazing fast counterattacks launched by Mexico took Germany by surprise over and over again, and despite coming close many times, it was Hirving Lozano's 35th minute effort from close range that was enough to seal Germany's fate in Moscow. But since then, a lot has changed and they emerged as the greatest force of the World Cup. Below are some reactions to Mexico's first world cup win. Defending champions of World Cups haven't had a good time defending their title in the recent past, and Germany's defeat will put them under vast pressure to turn things around in little time. Germany are the Confederations Cup champions, and had a fantastic season in the World Cup Qualifiers.
"The phrase was "play with the love of winning and not the fear of losing", an emotional Osorio told reporters. "We need to see what caused this".
And when Rafael Marquez came on in the 74th minute he made history too, tying a record by playing in his fifth World Cup. He came up with another clean stop on Kroos, who fired a left-footed rocket from 20-yards after Mexico had turned the ball over in its own third.
Even in the face of severe second-half German possession, they looked comfortable until substitute Julian Brandt hit the post with a fine late strike.
Germany have averaged 3.5 goals per match in their opening games of the World Cup since they last lost an opener - 36 years ago against Algeria.