Touted by some as the “new capital of the automotive industry,” Mexico’s robust supply chain, evolving trade networks, and influx of investment are driving car production companies to flock to the country and making Mexico a center of vehicle manufacturing.
Since its humble beginnings, Mexico’s automotive industry has grown to become the country’s largest manufacturing sector. With automotive production estimated at over 3.7 million units in the year 2020, the AMIA (Mexican Automotive Industry Association) estimates that Mexico will become the fifth-largest automotive producer in the world by 2025. It’s no wonder that automotive suppliers and manufacturers are racing to take part in the booming industry. Vehicle manufacturers from Audi and BMW to Ford, General Motors, and Volkswagen have established operations in the country.
Providing jobs for over one million workers nationwide, Mexico’s automotive industry hosts a workforce known for its skill and low-cost structure. Companies operating automotive plants in Mexico also have access to 300 R&D centers and produce more than 50 auto brands and 500 models. The entry into force of USMCA in 2020 has only primed the industry for even more explosive growth in the near future, with rule-of-origin changes now requiring that 75 percent of total auto content be made in North America to receive duty-free status.
