15 Key Facts about the Automotive Industry in Mexico
The Mexican economy has a treasure, which is its automotive industry. It attracts the interest and capital of the world’s major assemblers. This is not only due to the high quality and innovation that goes into what it produces but also its skilled and productive labor. What’s more, geographic proximity to the United States means lower transport costs and on-time delivery.
Mexico’s automotive sector has great business potential. Here are15 key facts that make it clear:
1. Mexico is the largest automotive manufacturer in Latin America, with annual production of close to 4,000,000 units, 82% of which is exported.
2. Our country is the sixth producer of automobiles globally. From 2009 to 2011 it rose two positions, surpassing France and Spain.
3. By 2020, domestic automotive production is expected to be 5,000,000 vehicles a year. This will make Mexico the fourth largest manufacturer in the world.
4. Today it is the fourth exporter of motor vehicles in the world. In 2015, it sent 2.8 million units abroad.
5. It is the fifth auto parts manufacturer internationally and the number one auto parts supplier to the United States (the largest market in the world).
6. It is the main creator of direct jobs (over a million) and foreign currency (nearly 60 billion dollars; which surpasses oil, remittances and tourism).
7. Foreign Direct Investment (FDI) in the automotive and auto parts sector was 6 billion dollars in 2015, a historic record.
8. The automotive industry generates nearly 4% of Mexico’s GDP and close to 20% of the manufacturing GDP.
9. Its three main export destinations are the United States (76.8%), Canada (9.3%) and Germany (3.1%). Mexico does business with over 40 countries.
10. This country sold 1.3 million automobiles in 2015. Monthly sales exceed 100,000 units.
11. Four out of every 10 cars sold in the country are compacts and subcompacts.
12. In the first half of the year, 2,830 hybrid and electric cars were sold, 42.5% of them in Mexico City.
13. The country’s first automobile plant dates back to 1921. It now has 24 production complexes in 14 states.
14. Mexico has over 2,500 auto-part suppliers, at the three production tiers (T1, T2 and T3).
15. There are 11 research and development centers and over 30 automotive design centers in the country. We are not only simple manufacture exporters, but innovation generators as well.
Automobile production and assembly is one of the most thriving industries in the country due to recent investments and increase in the production capacityof its plants.
Source: Asociación Mexicana de la Industria Automotriz(AMIA, Mexican Automotive Industry Association),Secretaría de Economía (Ministry of the Economy), Asociación Mexicana de Distribuidores de Automotores (AMDA, Mexican Association of Motor Vehicle Distributors) and ProMéxico.