The International Trade Council is thrilled to spotlight Mexico's automotive sector, which has registered a record-breaking foreign direct investment (FDI) of US$5,024 million in the first half of 2023. This milestone is not just an all-time high for a six-month span but also surpasses the previous annual record of $4,281 million achieved in 2019.
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 Potosí 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 León 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 Bajío.
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.
