The Automotive Industry in Mexico: Some Recent Facts

Mexico has emerged as one of the world’s top automotive producing economies. The nation ranks ninth globally in the production of light vehicles, while U.S.-based automotive manufacturers rank number three world-wide. China tops the list of global producers with 18,264,667 units built in 2011.

The following are some facts concerning the recent performance of the automotive manufacturing sector in Mexico:

• In 2011, Mexico realized a 10% growth in domestic automobile sales. It is expected that the percentage increase will be in the vicinity of 5% between the present and 2015.

• During the last year, Mexico second most imported manufactured goods were light vehicles. Only machinery and electrical equipment exports were higher in dollar value than automotive exports from the country.

• Light vehicle production in Mexico from January – November of 2011 numbered 2.3 billion units. This output represented a historical high, and constituted an increase in automotive production in Mexico of 13.8% over the prior calendar year.

• Mexico’s automotive industry contributed 3.2% to the country’s GDP in 2011, while it made up 18.2% of the Mexico’s overall manufacturing GDP. Collectively the automotive industry in Mexico employs approximately 470,000 workers.

• Major investments in Mexico’s automotive industry in 2011 were made by Nissan, Honda, Mazda, GM and Fiat. German automotive manufacturers such as BMW and Volkswagen continued to play an important role in the Mexican automotive sector.

• The City of Saltillo is a dominant player in the dynamics of the Mexican automotive industry. It is home to six Chrysler plants. The most recently installed Chrysler manufacturing facility in Saltillo represents an investment of $570 million dollars, and employs seven hundred workers.

• Nissan’s investment, one of the largest in the Mexican automotive industry in 2011, represents a $2 billion dollar capital investment in the State of Aguascalientes. Production is anticipated to commence in 2013. During the first phase of the project, it is anticipated that one hundred and seventy-five thousand units will be produced annually. This will instigate the creation of 10,000 direct labor jobs in the state’s economy.

As a result of the prominence of Mexico in the global automotive industry, suppliers from a multitude of countries beyond just the United States have identified the country for planned future expansion. Second and third tier suppliers from automotive and auto parts producing nations such as Germany, Italy, Korea, India, Japan and Turkey are making commitments to service customers located in Mexico from a Mexican production facility.

The Offshore Group is well-positioned to enable automotive industry suppliers seeking to set up operations in Mexico at reduced risk and cost through its Mexico Shelter Program. The company’s La Angostura Industrial Park, run by its Saltillo subsidiary, Manufacturas Zapalinamé, is already home to several suppliers to the city and the region's large automotive manufacturers.

The La Angostura industrial park is located on the south side of the City of Saltillo. It is gated, and outfitted with twenty-four hour human and CCTV security systems.