Mexico’s automotive landscape is globally recognized for its robust competitiveness, modernized facilities, a skilled workforce, and dynamic production tailored predominantly for export markets. In 2022, the nation saw an overall surge in exports by 16.9% against the prior year, predominantly fueled by a 13.8% increase in automotive products. This uptick can be attributed to a 9.8% spike in sales to the United States and an impressive 39.6% boost in sales to other international markets.
On a related note, the auto parts production in Mexico also witnessed robust FDI inflow, registering $1,398 million in the first half of 2023. It is essential to note that the record for an entire year stood at $3,448 million in 2017.
Further data from the Bank of Mexico showcases that the nation’s automotive product exports amounted to $89,403 million in the first half of 2023, marking a 14.2% year-on-year growth. As of June 30, 2023, global light vehicle production has also seen an 8.8% annual increase, with production volumes surging across North America, EMEA regions, Asia, and China.
While 2020 observed a dip in manufacturing due to the adverse impacts of the Covid-19 pandemic, Mexico’s total manufacturing saw a revival, growing by 5.2% in 2022 against 2021, bolstered by increased foreign investments and rising demand.
Moreover, some pivotal investment announcements in the last year have spotlighted Mexico’s position in the global automotive arena:
- VW: Announced a $763 million investment in October 2022 for its Puebla plant, focusing on electric SUV assembly.
- BMW: Revealed a substantial investment of over $860 million in February 2023 to enlarge its San Luis Potosà  facility, aiming to produce both cars and electric batteries.
- Stellantis: In February 2023, committed to a $200 million initial investment in its Saltillo, Coahuila plant to initiate the production of its first electric vehicle, the RAM Promaster.
- Tesla: Confirmed its plans in March 2023 for an assembly plant in Santa Catarina Nuevo Leà ³n for a new generation electric vehicle with a proposed investment of $5,000 million.
- Jetour: The Chinese auto giant declared in March 2023 its plan to inject $3,000 million to establish a combustion and electric vehicle assembly plant in Bajà Âo.
The International Trade Council remains committed to promoting trade transparency and global collaboration. We congratulate Mexico on its continuous achievements in fostering a welcoming environment for foreign investors in the automotive sector.