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Mexico Automotive Industry - Automotive Manufacturers, Sectors and The Benefits of Manufacturing in Mexico

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Auto Industry in Mexico

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. Car manufacturers need you! 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.

Auto Industry Labor Force

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!

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 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
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Automotive Industry in Baja California, Mexico

Automotive & Auto Parts Manufacturing 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.

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