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
-
Experience. The first automotive industry plant was
established in Mexico in 1921, beginning a tradition in the country
of almost a century. Products manufactured in Mexico have positioned
the country as a platform to develop and manufacture vehicles, parts
and global components with the highest and most rigorous
international quality standards.
-
Wide Supply Network. The renowned quality of Mexico's
automotive manufacturing has prompted several assembly companies to
select Mexico as a unique manufacturing platform for their markets.
Various models sold around the world are produced exclusively in
Mexican facilities; for example, the Ford Fusion, the Lincoln Zephyr
MKZ and the Volkswagen Beetle.
-
Talent. AAccording to data published by INEGI, by December
2011, the automotive manufacturing sector had a pool of 661,649
individuals.
Most Mexican engineers and technicians speak English as a second
language, according to the study "Current situation and action
plan to improve technology development of the automotive sector in
Mexico," by AT Kearney, INA and AMIA. According to the Ministry of
Public Education, every year around 115 thousand students graduate
from engineering and technology programs.
-
Strategic Location. o The leading North American,
European and Asian auto parts companies have established in Mexico
in order to ensure "just in time" deliveries and facilitate the
production flexibility required by assembly companies.
Mexico is located in the heart of the automotive world and is the
point of convergence of the two leading manufacturing corridors of
North America.