The Automotive Industry in Mexico
Mexico's automotive industry is mature, dynamic and in continuous growth. In 2011, the automotive sector accounted for approximately 4% of the Mexican GDP and 20% of Mexico's manufacturing GDP, according to the Mexican Association of the Automotive Industry (AMIA).
In 2011, Mexico's automotive sector showed signs of rapid growth; light vehicle production reached a new historic record with 2.55 million units.
According to the ranking of 40 countries by the International Organization of Motor Vehicle Manufacturers (OICA), based on car production, Mexico ranked eighth globally.
Although the United States is still the main export market for Mexican cars and trucks, in recent years several markets such as Latin America have increased their share in Mexican exports. In 2009, 8 of every 100 vehicles were exported to Latin America, while in 2011, the number increased to 15 of every 100. Europe is another important destination for Mexican exports; ten of every 100 light vehicles exported in 2011 were sent to the European Union.
Mexican automotive exports reached 2.14 million cars sold abroad, adding up to a 15% increase compared to 2010.
Regarding auto parts, 2011 experienced an 18% increase compared to the previous year, with income reaching 67.989 billion dollars. Investments to the auto parts industry reached 900 million dollars, maintaining Mexico as the leading auto part supplier to the United States, according to reports by the National Auto Parts Industry (INA).
Companies Established in Mexico
The automotive and auto parts industries in Mexico have been pushed by the productive presence of the world's top ten vehicle (light and heavy) assembly companies, such as General Motors, Ford, Chrysler, Volkswagen, Nissan, Honda, BMW, Toyota, Volvo and Mercedes Benz. In total, there are nine light vehicle producers in Mexico, ten heavy vehicle producers and close to 1100 auto parts manufacturers, of which more than 300 are first tier suppliers.
Most assembly companies in Mexico have auto parts companies located in the vicinity of their car plants to satisfy supply demands and delivery deadlines.
In addition, according to the Automotive Aftermarket Suppliers Association (AASA), 84 of the 100 leading auto parts companies in the world have production presence in Mexico.
Foreign Direct Investment
In 2011, Mexico's automotive sector received 6% of the country's total foreign direct investment (FDI). This consolidates Mexico as an attractive destination for investments in such industries.
From 2008 to March 2012, companies such as Ford, Nissan Honda and Mazda, among others, announced investments for more than 12 billion dollars to manufacture complete vehicles, engines and transmissions, among other products.
Strengths of the Automotive Sector in Mexico