The Automotive Industry in Mexico
Mexico is a producer of vehicles of great quality and innovation. Vehicles made in Mexico comply with high standards and are sold in the most demanding and competitive international markets.
In 2012, the terminal automotive industry grew in three significant areas: the domestic market, exports and production. That year, the automotive industry accounted for approximately 4% of the country's GDP and 20% of its manufacturing GDP.
Light vehicle production grew by 12.7%, going from 2.6 million units in 2011, to 2.9 million in 2012, hitting a new record for assemblers in Mexico. On the other hand, the heavy vehicle industry recorded a 3.8% growth in production, with 138,078 units.
While the United States continues to be the leading export market for Mexican cars and trucks, it is not their only destination, as Mexican vehicles are also exported to Latin America, which in recent years has increased its share in Mexican exports.
In 2009, eight of every 100 light vehicles were exported to Latin America, while in 2012, the number increased to 15. According to AMIA, in 2012 Mexico continued to export a large number of vehicles to Brazil, in spite of the ACE 55 renegotiations.
Mexican vehicle exports in 2012 reached 2.5 million units, a 9.4% increase compared to 2011.
Companies Established in Mexico
Mexico's automotive and auto parts industries have been boosted by the arrival of vehicle assemblers (light and heavy) from around the world, such as: General Motors, Ford, Chrysler, Volkswagen, Nissan, Honda, BMW, Toyota, Volvo and Mercedes-Benz. There are a total of 19 production complexes in 11 Mexican states, engaged in activities that range from assembly and bullet-proofing to vehicle and engine casting and stamping. More than 48 car and light truck models are currently produced in Mexico.
Most assemblers in Mexico have auto parts companies located near their plants to satisfy supply and delivery time demands.
Mexico offers assemblers high manufacturing capacity as well as the design and production of models to the highest quality standards and which are sold in markets with the highest demand. These are some examples:
Attraction of Foreign Direct Investment
Mexico's automotive and auto parts industries accounted for 20.8% of total foreign direct investment (FDI) in 2012. This proves that Mexico is an attractive destination for investments in the automotive industry.
According to the Ministry of Economy, the terminal automotive industry attracted 861.7 million dollars in 2012. Accumulated FDI in the terminal automotive and auto parts industries in the 2006-2012 period is 13.283 billion dollars, an 8.8% share of total FDI received in Mexico during that period.
Strengths of the Automotive Industry in Mexico