México Automotive Manufacturing Industry

México has been placed among the main producers of vehicles at international level and the first place in Latin America, maintaining a growth in recent years reaching historical export records in both light and heavy vehicles. It is important to highlight the growth that Mexico has had as a producer of vehicles at an international level;

The automotive and auto parts sector in México has been driven by the productive presence of the main vehicle manufacturers (light and heavy) in the world, such as: General Motors, Ford, Chrysler, Volkswagen, Nissan, Honda, BMW, Toyota, Volvo, and Mercedes-Benz. In total, there are 24 productive complexes in the country's 14 states, in which activities ranging from assembly and armoring to the casting and stamping of vehicles and engines are carried out. Currently, Mexico produces more than 40 models of cars and light trucks. Most of the assembly companies in Mexico have auto part’s companies that are located around their vehicle plants to meet the requirements of suppliers and delivery times.

México went from being an exporter of simple manufactures, to become a generator of innovation. In our country there are more than 30 automotive design centers.

Strengths of the Automotive Sector in México

Competitive costs According to the study by KPMG Competitive Alternatives 2014, compared to the US, Mexico offered savings of 10% in auto parts manufacturing costs, 8% in precision components and 13% in both plastic supplies and metal components used. for the industry.·     

  • Experience. The first plant of the automotive industry was established in Mexico in 1921, so our country has a tradition of almost a century in this sector. The products made in México have positioned the country as a platform for the development and manufacture of vehicles, parts, and components with the highest and strictest international quality standards.
  • Wide supply network. The recognized quality of Mexican automotive manufacturing has made it possible for diverse assemblers to choose Mexico as a unique manufacturing platform for all its markets. Thus, various models sold around the world are produced exclusively in Mexican plants.   
  • Talent. Most of the engineers and technicians in México speak English as a second language, according to what was reported in the study "Current situation and action plan for the improvement of the technological development of the automotive sector in México", by AT Kearney, INA and AMIA.
  • According to figures from UNESCO, in México there are 26% more graduates in manufacturing and construction engineering per capita than in the United States.
  • Strategic location. The main auto parts companies in North America, Europe and Asia have been established in the country, to guarantee deliveries "just in time" and to facilitate the production flexibility required by the assembly companies.Mexico is in the center of the automotive world and is the point where the two most important manufacturing corridors of North America converge. 

Automotive clusters locations

  • Aguascalientes
  • Baja California
  • Chihuahua
  • Coahuila
  • Estado de México
  • Guanajuato
  • Jalisco
  • Morelos
  • Nuevo León
  • Puebla
  • San Luis Potosí
  • Sonora

Source: Manufacturing firms, industry associations, local, state and federal government and economic development agencies.