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.
Key Mexico Automotive Industry Statistics
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.
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.
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.
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