Automotive Manufacturing Industry in Mexico

Mexico is the biggest market in Latin America for cars and automotive parts. Additionally, there are plenty of investment opportunities in this developing country.

Mexico ranks the 1st country in terms of auto part manufacturing and ranks 14th in terms of becoming a major vehicle manufacturer. It is home to globally recognized automakers such as Volkswagen, Toyota, Audi, BMW, Kia, Ford, and Porsche. .

If you would like to learn more about the opportunities related to the Mexican automotive industry, please get in touch with our team for more information.

Mexico is the largest U.S. automotive export market with a revenue of USD 78 billion, followed by Canada with just under USD 30 billion and China at USD 18 billion.

In addition to these major markets, Mexico also exports parts to various countries, including Poland, Brazil, and India.
Because the Mexican industry is increasing, there is an excellent opportunity for producers to grow their business.

The Automotive Industry represents one of the most dynamic and competitive Industries in Mexico due to several factors:

• Competitive costs
• Excellent communication infrastructure
• Strategic location
• Broad experience (the first automotive plant was established in 1921)

The prospects of the Mexican automotive industry are looking solid and promising due to several factors that support such growth, including:

• Authorities have been working to find local companies that will help manage supply chains. Developing solid relationships with other companies is one of the best and most practical ways to overcome challenges in the automotive industry.
• The US is Mexico's number one export destination and partner, with a healthy 18% annual growth rate.
• Mexico's open economy and free trade policy has created an ideal environment for product manufacturers.
• Several new OEs and auto part suppliers enjoying favorable trade benefits in Mexico are currently receiving a lot of business.
• The proportion of new cars that are produced by OEMs is growing. This provides growth opportunities for any new companies looking to enter the market.

The automotive market is highly competitive in Mexico and other global markets. With a ready and established market, Mexico can continue to develop that sector through various activities, including local production, sourcing, auto parts, and other supporting services.

It's essential, however, to put yourself in the shoes of your target audience when building a sales pitch and make sure you know what they want. This may reduce customer service complaints by ensuring that you provide only products that meet your customers' demands.