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Automotive Industry in Baja California, Mexico

Automotive & Auto Parts Manufacturing in Baja California, Mexico

Advantages of Nearshoring in Mexico, Key Highlights and 2016 Industry Overview.
Why are Automotive Manufacturers Expanding to Mexico?

Automotive Industry in Mexico

More than 1,100 Tier 1 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 investors due to its strategic advantages and NAFTA agreements, 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.

Companies 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. Car manufacturers need you! If your company makes auto parts and components, opening operations in Mexico will not only help you serve your existing customers, but introduce you to new customers as well.
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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 $2.42 an hour. TODCO, a manufacturer of roll up doors and ramps for trucks and trailers, achieved 81% labor cost savings when they began manufacturing in Mexico.

Automotive Products & Sectors in Mexico

  • 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 Products & Sectors in Mexico

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.

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 employ 740,544 as verified by the Mexican Automobile Industry Association (AMIA). This has boosted the Mexico's economy with the revenue earned by this sector far exceeding the revenue earned from the export of crude oil or tourism. The State of Baja California is home to over 80 automotive companies and more than 30,000 employees for automotive and auto parts manufacturing.
  • 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

"Expanding to Mexico positioned TODCO closer to our customer base in Mexico and Southern California."

“Taking a tour to Tijuana with CPI helped our organization in a decisive manner and move from the imaginary and visionary stage into a real and actual world class incremental analysis solution. It provided synergy to step into the real and actual opportunity that manufacturing in Tijuana represents.”

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