Fact Sheet: Mexico’s Automotive Industry – Opportunities Abound


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Fact Sheet: Mexico’s Automotive Industry – Opportunities Abound

Automotive production has cemented Mexico’s reputation as a leading manufacturing hub for the Americas. Today, Mexico is the seventh-largest producer in the global automotive industry. Currently 9 of the 10 major automotive OEMs have operations in Mexico, from automotive industryjuggernauts such as GM, Ford, and Chrysler in the US; to Germany’s Volkswagen and BMW; along with major Japanese manufacturers such as Nissan, Mitsubishi, Honda and Toyota.

automotive industry

Disclaimer: Company names and logos are intended for informational/educational purposes only and do not in any way constitute an endorsement of Entrada Group or its services.

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More on Mexico’s Automotive Industry predicts that Mexico’s automotive industry will increase annual output to 4.2 million units by 2026, up from the 3.9 million units in 2018.

The quality and reliability of Mexico’s supply base to service these OEMs, however, is relatively uneven. Several common key production processes are frequently hard-to-find, and lack of in-country availability and know-how necessitates importation or a reliance on external expertise. This is good news for international suppliers that have a Mexico presence or are willing to establish one. Typically, once a new model is announced by an OEM manufacturing in Mexico, suppliers have roughly a two-year window to be up and running with their operations.

Because Mexico’s automotive industryhas grown significantly throughout the past two decades, these shortcomings in several key areas up and down the supply chain need to be addressed. These gaps yield considerable expansion opportunities for mid-market suppliers that are able to enter Mexico and manage their own operations.

Our fact sheet provides key insights to help you make a well-informed investment decision:

  • Map of Mexico depicting production plants of the major automotive OEMs
  • Production facility information, from what they assemble at each plant to their current workforce
  • Mexico’s strengths and opportunities—strong reasons why foreign suppliers to the automotive industryneed to consider Mexico for their next production location

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