Automotive Manufacturing in Mexico

Companies are racing to become a part of Mexico’s top industry: automotive manufacturing.

Mexico’s Automotive Manufacturing Industry Races To The Top

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 companies to flock to the country.

Since its humble beginnings, Mexico’s automotive industry has grown to become the country’s largest manufacturing sector. With auto production estimated at over 3.7 million units in 2020, the AMIA (Mexican Automotive Industry Association) estimates that Mexico will become the fifth-largest vehicle producer in the world by 2025. It’s no wonder that automotive suppliers are racing to take part in the booming industry. Automakers from Audi and BMW to Ford, General Motors, and Volkswagen have established operations in the country.

Employing over one million people 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, with rule-of-origin changes now requiring that 75 percent of auto content be made in North America to receive duty-free status.

Free Data Sheet

What to know about
Automotive Manufacturing
in Mexico

Thinking about manufacturing in Mexico? Learn about Mexico's Automotive industry and how shelter services can help.

Automotive Industry

Key Mexico Automotive Industry Statistics

3.7 million

auto units produced in 2020

According to AMIA (Mexican Automotive Industry Association), it is estimated that Mexico will produce upwards of 3.7 million units in 2020, making it the sixth-largest vehicle producer globally. It is anticipated that Mexico will move up to the fifth-place spot by 2025.

90%

of Mexico’s auto production is dedicated to export

90 percent of Mexico’s vehicle production is dedicated to global exports, with 79 percent going to the United States. Mexico’s participation in a number of free trade agreements, including USMCA, is the driving force behind the country’s automotive manufacturing success.

7

major sub-sectors create manufacturing opportunity

Automotive manufacturing in Mexico is made up of seven major sub-sectors: original equipment (OEM), aftermarket parts, electric and hybrid vehicles, remanufactured products, heavy vehicles, and other specialty vehicles.

Drive Growth with Tetakawi’s Automotive Advantage

Whether you’re thinking about manufacturing in Mexico or you’re already there, Tetakawi can help your company launch, operate, and thrive in the country’s booming automotive industry. With over 34 years of experience in the Mexican manufacturing landscape, we’re connected to some of the most robust auto supply chains in the country. Our services are built on strategy, driven by experience, and tailored to meet your operation’s unique needs. Though we’re the largest shelter services provider in Mexico, our hands-on approach means that you can rely on a trusted partner to guide you every step of the way. We can help you:

 

  • Select the right site for your automotive manufacturing business
  • Configure legal, organizational, and support structures
  • Recruit, train, and retain your employees
  • Manage all admin functions from finance and accounting to labor and customs
  • Keep things running smoothly from initial launch through ongoing operation
  • and so much more – we do the heavy administrative lifting so that your team can focus on your competitive advantage: manufacturing excellence.

We’ll help your automotive operation speed
smoothly across the finish line.

Establish or expand your automotive manufacturing business in Mexico with our tailored services. From in-depth consultations to turnkey manufacturing facilities, we can help you at any stage of your expansion process.

Shelter Services

Focus on what you do best and we’ll do the rest – our shelter service offering is the easy, cost-effective, and low-risk way to establish an automotive manufacturing presence in Mexico.
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Soft Landing

Launch successfully with a streamlined team of experts dedicated to make sure your entry strategy is executed on-time and on-budget.
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Manufacturing Communities

Run your automotive operation seamlessly with turnkey manufacturing facilities that combine Class A industrial space, on-site support, and shelter services.
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Advisory Services

From site selection and customs analysis to cost estimation, we’ll help you make decisions that are informed, strategic, and actionable.
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FAQs About Automotive Manufacturing in Mexico

What is the top sector for opportunity in Mexico’s automotive industry?
Mexico’s automotive industry is host to seven major sub-sectors, and of these original equipment (OE) is one of the largest opportunities. Mexico’s automotive OE market is worth USD $73 billion, with over 2,500 companies in the sector.

 

Where should my company locate a facility for automotive manufacturing in Mexico?

Mexico’s automotive industry has clusters located throughout the country, but two locations stand out for their strategic position: Saltillo, Coahuila, and Queretaro, Queretaro. Companies looking to establish automotive manufacturing in Mexico often choose to do so by using a manufacturing community. Located in the heart of Saltillo, our Zapa Manufacturing Community in provides a turnkey solution combining operating space, on-site support, and a comprehensive legal framework. To learn more or get help choosing a location, explore our site selection services.

Latest Automotive Industry News

Overview of the Automotive Manufacturing Industry in Mexico

Overview of the Automotive Manufacturing Industry in Mexico

Automotive manufacturing is Mexico’s largest industry – and with a storied history, strong clusters, and sophisticated workforce, companies are taking advantage.

The-Mexican-Automotive-Industrys-Long-History

The Mexican Automotive Industry's Long History

With roots that date to the 1900s, Mexico’s automotive industry began with Ford, grew as trade boomed, and is today a manufacturing dynamo that produces over 3 million cars per year.

Get-To-Know-Saltillo’s-Automotive-Manufacturing-Industry

Get To Know Saltillo’s Automotive Manufacturing Industry

Nestled in the high desert of Mexico’s third largest state, Saltillo is home to a booming automotive cluster.

Start Your Mexico Strategy Today!

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