'You're not really flatulent,' Mexicans told by Beeb
But the corporation defended the show's presenters, who branded Mexicans "lazy", "feckless" and "flatulent", saying that national stereotyping was part of British humour.
His Excellency Eduardo Medina-Mora Icaza wrote to the corporation to complain about the "outrageous, vulgar and inexcusable insults".
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Hide AdThe BBC said it had now written to the ambassador to say it was sorry if the programme caused offence.
In a statement the corporation said the comments may have been "rude" and "mischievous", but there was no "vindictiveness" behind them.
It said: "Our own comedians make jokes about the British being terrible cooks and terrible romantics, and we in turn make jokes about the Italians being disorganised and over dramatic, the French being arrogant and the Germans being over-organised.
"Whilst it may appear offensive to those who have not watched the programme or who are unfamiliar with its humour, the executive producer has made it clear to the ambassador that that was absolutely not the show's intention."
The BBC said stereotype-based comedy was allowed within its guidelines in programmes where the audience knew it could be expected.
The executive producer of Top Gear also apologised to the ambassador personally for remarks made about him.
In the episode, broadcast on 30 January, Richard Hammond joked that Mexican cars reflected national characteristics, saying they were "just going to be lazy, feckless, flatulent oaf with a moustache, leaning against a fence asleep, looking at a cactus with a blanket with a hole in the middle on as a coat".
James May described Mexican food as "like sick with cheese on it".
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Hide AdAnd Jeremy Clarkson predicted they would not get any complaints about the show because "at the Mexican embassy, the ambassador is going to be sitting there with a remote control like this (he pretends to snore]. They won't complain, it's fine."
In his letter to the BBC, the ambassador wrote: "The presenters of the programme resorted to outrageous, vulgar and inexcusable insults to stir bigoted feelings against the Mexican people, their culture as well as their official representative in the United Kingdom.
"These offensive, xenophobic and humiliating remarks only serve to reinforce negative stereotypes and perpetuate prejudice against Mexico and its people."
The ambassador demanded the show's hosts make a public apology and it remains to be seen if the BBC's response to his complaints have gone far enough.
Hundreds of Mexicans contacted the BBC to protest against the remarks, which caused national outrage.
A cross-party group of six MPs urged the BBC to apologise as "a matter of urgency", saying "this level of ignorance is far below anything expected from anyone in the public eye and illustrates a serious lack of judgment by the programme makers".
Deputy Prime Minister Nick Clegg visits Mexico later this month.
It is not the first time the presenters of the long-running show, with its blend of motoring news, schoolboy humour and audacious stunts, has got into trouble. In 2008, the show was rapped by the BBC Trust for showing Clarkson and May sipping gin and tonics at the wheel during a stunt.
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Hide AdHundreds of viewers also complained after Clarkson made a joke about lorry drivers murdering prostitutes.
Press reaction illustrates how some jokes do not travel well
The BBC apology gained widespread coverage yesterday in Mexican newspapers such as El Heraldo, left, and Milenio Novedades
in the Richard Hammond world view, Mexicans may be habitually asleep - but his quip certainly woke them up. The Top Gear presenter's take on Mexican motors, and the BBC's apology, made front page news in the country's newspapers yesterday. "The British say sorry for offending Mexico," said the daily El Heraldo, which quoted the BBC apology in full, together with its explanation that humour based on national stereotypes would be familiar to the show's audience. Milenio Novedades, another daily flagged up the story on its front page with the headline "Top Gear apologies to the Mexicans. 'We didn't want to offend' - BBC".
A way with words
"Mexican cars are just going to be lazy, feckless, flatulent, overweight, leaning against a fence asleep looking at a cactus with a blanket with a hole in the middle on as a coat"
Richard Hammond claim that Mexican cars reflect national characteristics is by no means the first time 'Top Gear' humour has given BBC bosses cause for concern
"We have this one-eyed Scottish idiot who keeps telling us everything's fine and he's saved the world and we know he's lying, but he's smooth at telling us"
Jeremy Clarkson's assessment of then Prime Minister Gordon Brown in 2008
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Hide Ad"Change gear, change gear, check mirror, murder a prostitute, change gear, change gear, murder. That's a lot of effort in a day"
How we laughed at Clarkson's summary of the average working day of a lorry driver, also in 2008