Mexico as a Global Manufacturing Hub, Part 1

By John Paul McDaris

Much has been written about Mexico as a manufacturing hub for the entire Western hemisphere. With Mexico’s liberal free trading philosophy and integration into global transport networks, that status is not only well explained and understood, it’s also getting even stronger.

But to what extent do the actual numbers back up the claim that Mexico is a global player in automotive manufacturing? We checked into the data (in this case from the Automotive Industry Action Group), which allowed us to draw some additional conclusions.

Where do Mexico's automotive exports go?

First, while exports from Mexico to North America (i.e., just the US and Canada) are still greater, by a substantial margin, than all exports to the rest of the world combined, this imbalance is only going to shrink over time. As more and more of the global OEMs set up operations in Mexico, the percentage of exports going to South America, Europe and Asia will only grow. With 2014 seeing the addition of BMW (in San Luis Potosi), Kia (in Monterrey) and Daimler’s joint venture with Nissan (in Aguascalientes), nearly all of the world’s carmakers are now present in Mexico. The US and Canada will always represent the lion’s share of Mexican automotive exports. But in a decade or so, this pie graph should look a lot different from how it appears now.

Second, while it’s informative to know where Mexico’s exports are going, it’s equally crucial to understand the size of the Mexico automotive export landscape in its entirety. That angle we will take on in our next blog post.

Source: Automotive Industry Action Group

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