He managed to return to the stage finish but was forced to withdraw due to damage sustained to his gearbox.
Jari-Matti Latvala retired from third after losing control of his car and running off the road, hitting a spectator, though no-one was seriously injured.
Ogier protested the event going ahead, but with the changes to the route approved by the FIA, he took to the start and went on to claim the win.
Jari-Matti Latvala was delayed by mechanical issues, suffering a broken drive shaft early in the second stage.
Mads Østberg completed the podium, having taken advantage of his rivals' ongoing battles to build and sustain a margin big enough to maintain third overall.
Having scored no points in the opening rounds while Ogier took a full 58, Jari-Matti Latvala started the Rally Mexico needing to secure a strong result if he was to have any hope of mounting a bid for the World Drivers' Championship.
With the running order for the final day—which included the single longest special stage on the calendar, weighing in at eighty kilometres—based on the rally standings, Latvala's advantage was quashed, but his lead strong enough to secure his first win of the season ahead of Ogier.
Hyundai's Dani Sordo finished third overall, but a late penalty handed the final podium place to Mads Østberg.
Wishing to continue his point scoring momentum, Jari-Matti Latvala targeted Argentina as another rally to win to further his championship standings.
In the afternoon, however, Latvala suffered a major accident, forcing him to retire, and giving the lead to Paddon.
Paddon's car became engulfed in flames which destroyed it, but Tänak managed to pull his vehicle away from the inferno.
Thierry Neuville would win his second WRC event, followed by Latvala in second and then Ogier, who managed to score all three power stage points.
After career-best position in Poland in 2015, Ott Tänak was determined to make the most out of this year's running of the event.
Friday saw the lead changing between Tänak, Andreas Mikkelsen, and Hayden Paddon, the later two of which wanted redemption for the lack of points in Sardinia.
Andreas Mikkelsen ended up winning the event ahead of a crushed Tänak, with Hayden Paddon finishing in third.
Due to the cancellation of Rally China, the Tour de Corse was the round after Rallye Deutschland.