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Automotive Manufacturing in Mexico: Key Players, Industry Sectors, and Advantages

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Auto Industry in Mexico

Mexico Manufacturing Automotive & Auto-Parts Industry

More than 1,100 Tier 1 automotive manufacturing companies have invested in setting up stamping, assembly and auto manufacturing plants in Mexico, positioning the country as the largest supplier of auto parts to the United States and an automotive global export platform.
 
This region is attractive to foreign car manufacturers due to its  strategic advantages  and trade agreements such as the USMCA (NAFTA), with companies expanding into Mexico every month. A greater flow of investment is expected in the automotive sector as trade agreements have been signed with more than forty countries. This industry attracts USD $2 billion per year in foreign direct investment.
 
Car manufacturers such as GM, Ford, and Chrysler, Germany’s Volkswagen, and major Japanese companies such as Nissan, Honda, and Toyota all operate assembly plants in Mexico. Together they produce 42 brands and 500 models throughout the country  benefiting from higher profit margins, proximity to business hubs, solid infrastructure and price competitiveness by manufacturing in Mexico.

Major Automotive Manufacturers in Mexico

You can’t assemble a car without parts. With major companies operating assembly and automotive production lines, automotive component supply is a crucial prong for success in the region. Auto parts suppliers are plentiful providing manufacturers with everything from nuts and bolts and wiring harnesses to delicate electronics parts and sheet metal fabrication.
 
If your company makes auto parts and components, expanding operations into Mexico will not only help you serve your existing customers, but introduce you to new customers as well.

Automotive Manufacturing Workforce

By manufacturing in Mexico, automotive manufacturers can expect a highly-skilled, low-cost workforce specially trained for a variety of processes. The average fully burdened line assembler hourly rate in Baja California is $2.60 an hour.

  • Passenger vehicle production
  • Wiring harnesses
  • Electronics manufacturing
  • Car audio equipment
  • Navigation equipment
  • Machined parts
  • Sheet metal
  • Brake systems
  • Light duty motor vehicles
  • Seating and interior products
  • Gasoline & engine parts
  • Electrical components
  • … and more!
  • Passenger vehicle production
  • Wiring harnesses
  • Electronics manufacturing
  • Car audio equipment
  • Navigation equipment
  • Machined parts
  • Sheet metal
  • Brake systems
  • Light duty motor vehicles
  • Seating and interior products
  • Gasoline & engine parts
  • Electrical components
  • … and more!
AUTOMOTIVE MANUFACTURING IN MEXICO HIGHLIGHTS

AUTOMOTIVE MANUFACTURING IN MEXICO HIGHLIGHTS

The automotive industry in Mexico is growing  at a tremendous pace due to significant demand. The output for vehicles in Mexico has reached a record figure of 1.23 million vehicles, auto parts manufacturers employ 740,544 as verified by the Mexican Automobile Industry Association (AMIA). This has boosted Mexico's economy with the revenue earned by this sector far exceeding the revenue earned from the export of crude oil or tourism.
 
The first two quarters of 2017 alone have shown an 8.9% increase in car production with companies turning out 1,051,725 cars. Light truck production has increased by 18.7%, producing 832,590 the first 6 months of 2017 according to the AMIA. The Automotive Industry in Mexico is  listed in the top ten largest exporters of the world. In 2008 this industry was the largest supplier of auto parts to the US. By 2020, sales are expected to reach $120 billion dollars.
 
  • The presence of OEMs; (Passenger vehicles, commercial vehicles & engines)
  • Proximity to California and North American markets
  • Export oriented industry steered by automotive engineering, product design, testing & R&D
  • Presence of Northern Cluster, Baijo Cluster, Central Cluster
  • Largest vehicle manufacturing country in Latin America
  • Largest supplier of auto parts to the US
  • Integrated manufacturing operations
  • Diversified workforce
  • The presence of OEMs; (Passenger vehicles, commercial vehicles & engines)
  • Proximity to California and North American markets
  • Export oriented industry steered by automotive engineering, product design, testing & R&D
  • Presence of Northern Cluster, Baijo Cluster, Central Cluster
  • Largest vehicle manufacturing country in Latin America
  • Largest supplier of auto parts to the US
  • Integrated manufacturing operations
  • Diversified workforce

At Co-Production International, we help by offering comprehensive administrative and compliance services for companies planning to invest in the region. We understand Mexico's potential and the opportunities it holds for the auto parts manufacturers. These manufacturers will be able to lower their manufacturing costs by 40-60% as compared to the costs they currently incur in the US. This is the reason companies like Ford, GM and Honda have already announced expansion plans in Mexico and leading OEM's have established auto assembly plants in the region.

Automotive Industry in Baja California, Mexico

Download Fact Sheet:

The Automotive and Auto-Parts Manufacturing Landscape in Baja California, Mexico

Over 1,100 Tier 1 manufacturing companies have made significant investments in establishing stamping, assembly, and automotive manufacturing facilities in Mexico. This strategic move has firmly established the country as the primary provider of auto parts to the United States and a pivotal hub for global automotive exports. For further details, you can access the fact sheet.

Ready To Establish Your Manufacturing Operation In Mexico?

Look No Further Than Our Team Of Specialists!

Whether you have questions about the process or are ready to get started, we're here to help.
Contact us today at (855) 480-0837 to learn how we can provide you with expert support every step of the way, from exploration to setup and beyond. With our extensive experience providing Shelter Services in Mexico, we'll ensure the success of your manufacturing operation in Mexico.
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Co-Production International, Inc. Administrative Service Provider San Diego, California

ico flag usaUSA Corporate Office
Ph: 619.429.4344 / 855.480.0837
8716 Sherwood Terrace
San Diego, CA 92154 USA

ico flag usaMexico Corporate Office
Ph: 855.480.0837
Blvd. Tomas Alva Edison 14022
Int. 7A, Tomas Alva Edison
Tijuana, BC 22163, Mexico
info@co-production.net

ico flag usaMexico Monterrey Office
Av. Benito Juarez 1102 Col. Centro
Piso 4 Torre Sur, Oficina 432
Monterrey, Nuevo Leon 64000, Mexico
info@co-production.net

Co-Production International, Inc. Administrative Service Provider San Diego, California

ico flag usaUSA Corporate Office
Ph: 619.429.4344 / 855.480.0837
8716 Sherwood Terrace
San Diego, CA 92154 USA

ico flag usaMexico Corporate Office
Ph: 855.480.0837
Blvd. Tomas Alva Edison 14022
Int. 7A, Tomas Alva Edison
Tijuana, BC 22163, Mexico
info@co-production.net

ico flag usaMexico Monterrey Office
Av. Benito Juarez 1102 Col. Centro
Piso 4 Torre Sur, Oficina 432
Monterrey, Nuevo Leon 64000, Mexico
info@co-production.net

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ico flag usaUSA Corporate Office
Ph: 619.429.4344 / 855.480.0837
8716 Sherwood Terrace
San Diego, CA 92154 USA

ico flag usaMexico Corporate Office
Ph: 855.480.0837
Blvd. Tomas Alva Edison 14022
Int. 7A, Tomas Alva Edison
Tijuana, BC 22163, Mexico
info@co-production.net

ico flag usaMexico Monterrey Office
Av. Benito Juarez 1102 Col. Centro
Piso 4 Torre Sur, Oficina 432
Monterrey, Nuevo Leon 64000, Mexico
info@co-production.net