In 2014, Mexico was positioned as the seventh largest producer of vehicles in the world and the largest producer of light vehicles in Latin America, surpassing Brazil with more tan 200,000 units. During that year, the production and export of light and heavy vehicles established a new high record in the country. It is important to note the growth that Mexico has experiences as an international vehicle producer. For example, during the 2009-2011 period, Mexico climbed two positions, overtaking France and Spain, countries with a long tradition in the automotive sector.
In 2014, the terminal automotive industry grew in three significant areas: the domestic market, exports and production. That year, the automakers and auto parts industries accounted for approximately 3% of the country's GDP and 17% of its manufacturing GDP.
Light vehicle production grew by 9.8%, going from 2.93 million units in 2013, to 3.22 million in 2014, hitting a new record for assemblers in Mexico. On the other hand, the heavy vehicle industry recorded a 23.6% increase in production, with 168,882 units.
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.
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 Asia, which in recent years has increased its share in Mexican exports. In 2011, 31,425 vehicles were exported to Asia while in 2014, the number increased to 127,171.
Mexican vehicle exports in 2014 reached 2.6 million units, a 12.2% increase compared to 2013.
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 24 production complexes in 14 Mexican states, engaged in activities that range from assembly and bullet-proofing to vehicle and engine casting and stamping. More than 40 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:
•Two of the leading car production plants in North America are in Mexico: Volkswagen Puebla and Nissan Aguascalientes. Both plants manufactured more than one million units in 2014.
•Mexico went from an exporter of simple manufacturing to an innovation generator. There are more than 30 automotive design centers in the country.
•With recent investment announcements of Audi, BMW, Mercedes Benz and Infiniti, Mexico has been positioned as an important country in the manufacture of luxury vehicles.
•According to Ward’s Automotive, two engines assembled in Mexico have been included in the "Top Ten Engines" for 2014.
•Similarly, three models assembled in Mexico placed among the "Top Ten Interiors" also published by Ward’s:
Mexico's automotive and auto parts industries accounted for 19.5% of total foreign direct investment (FDI) in 2014.
According to the Ministry of Economy, the terminal automotive industry attracted 2,208.2 million dollars in 2014. Accumulated FDI in the terminal automotive and auto parts industries in the 2006-2014 period is 23,490 billion dollars, an 10% share of total FDI received in Mexico during that period.
Competitive Costs. According to the KPMG study Competitive Alternatives 2014, compared with the US, Mexico offered a 10% savings in manufacturing costs of parts, components 8% precision and 13% in both plastic and supplies metal components used industry.
Experience. The first automotive plant was established in Mexico in 1921; that shows Mexico's long tradition in this industry. Products made in Mexico have positioned the country as a platform for vehicle, part and component development and manufacture with the highest and strictest international quality standards.
Wide Supply Network. The renowned quality of Mexican automotive manufacturing has enabled several assemblers to choose Mexico as the sole manufacturing platform for their markets. Many models sold around the world are produced exclusively in Mexican plants, for example, the Ford Fusion, Lincoln Zephyr MKZ and Volkswagen Beetle.
Talent. According to data published by INEGI, 697,582 people were employed by the automotive and auto parts manufacturing industries as of December 2013.
In 2012, according to National Association of Universities and Institutions of Higher Education's data, 101.7 thousand engineering and technology students graduated from Mexican institutions. From UNESCO's 2012 data, in Mexico there are 26% more graduates in manufacturing, engineering and construction per capita than in the United States