Automotive Market in Mexico

 Automotive Market in Mexico size was valued at US$ XX Mn in 2019 and the total revenue is expected to grow at 6.49% through 2020 to 2026, reaching US$ XX Mn.

Automotive Market in Mexico

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Overview of the automotive industry in Mexico:

Twenty one Automotive OEMs with Volkswagen/Audi, Mercedes-Benz, BMW, Ford, and Toyota & KIA produce in fourteen Mexican states. From the year 2000 to 2017 12 percent of the total FDI or 60 Bn USD were invested in the automotive industry. Owing to the close integration into the North American market, Mexico is a main manufacturer & exporter of vehicles & vehicle parts (6.7 percent). The Mexican Industry created 3.9 Mn vehicles in the year 2018 & registered an increase of 6 percent in vehicle exports, making it the fourth largest vehicle exporter.

Despite political & economic changes, Mexico stays the 7th largest light vehicle manufacturer globally & the largest in South America. The industry & the government suppose the continued development to lead to almost 5 Mn vehicles being produced annually by 2021. Within Mexico, the automotive segment hosts more than 800 000 direct jobs. This industry, which is the 2nd largest after food production, accounts for 2.9 percent of GDP, showing a considerably higher development (9.4 percent GDP growth vs. 2.0 percent average).
Mexican Production:

Automotive Market in Mexico1

Strengths of the Dynamic Automotive Industry in Mexico:

• Competitive production costs (labor & logistics)
• Strategic location (in North America, 42 Mio vehicles in Mexico)
• Long industry experience (1st automotive plant in 1921)
• Skilled labor force (strong technical universities)
• Developed Infrastructure (communication, highways and ports)

Changes in the Automotive Industry:

Mexico is an open, established market with a well- developed automotive industry. The new USMCA agreement in North America brings:

• 20 percent higher domestic content requirement (from 62.5 percent to 75percent in 2023)
• an average labor wage of $16/hour on 40 percent of the automobile & 45 percent in light trucks
• Reduced threat of unexpected trade sanctions by the USA
• Stabilized trade relations with the US based on a 16-year treaty.

With the higher domestic content need & a strong OEM occurrence, it is not uncommon to understand a time-bound pull of main lower tier suppliers into the country. The least wage requirement is not directly favorable for the advantages of manufacturing in Mexico, however it can act as a kick-starter for advanced automation.

Business opportunities for Swiss companies:

Owing to the above-mentioned variations, now is a great time for Swiss automotive businesses to approach the Mexican market & start or expand the presence. The Swiss brand is well known for its great quality & invention in Mexico. An active setup in Mexico offers broader choices & a more in-depth analysis of the particular Mexican partners. Owing to the occurrence of the industry in 14 states it makes sense to resolve in a northern as well as in a central cluster.

Total Ford, GM, and Fiat-Chrysler Production in North America, by Country: 2012-2015 Actual, 2016-2022 Forecast:

Automotive Market in Mexico2

60% growth in the Mexican automotive industry estimated through 2021:

The Mexican automotive industry will raise 60% between the current & the year 2021. In order to be positive, the country must face both the challenges & the opportunities which accompany growth. It is expected that, by 2021, Mexican automotive industry production of light vehicles will exceed a volume of 5Mn plus units. With this industry growth will come the aids of job growth & creation, as well as challenges which contain continuing to supply an educated & skilled workforce to the OEMs & suppliers that have invested in Mexico already, as well as those that will do so in the coming years. Also, advancements in Mexican transportation & logistics infrastructure related to its ports, roadways & airports will need to be ranked in order to keep pace with the development of the Mexican automotive industry, as well as of the economy as a whole.

The Mexican automotive industry is the undisputed train of the nation’s manufacturing segment. It is responsible for the generation of 19 % of the country’s GNP, as well as 25% of its exported products. The value of Mexican auto industry shipments to global customers, particularly those in the US, exceeds USD 50 Bn.

The report covers Commercial Vehicles, Passenger Vehicles, with detailed analysis Automotive Market in Mexico industry with the classifications of the market on the Type, Application & region. Analysis of past market dynamics from 2016 to 2019 is given in the report, which will help readers to benchmark the past trends with current market scenarios with the key players' contribution in it. The report has profiled twelve key players in the market from different regions. However, the report has considered all market leaders, followers, and new entrants with investors while analyzing the market and estimation the size of the same. The manufacturing environment in each region is different given on the regional impact on the cost of manufacturing, supply chain, availability of raw materials, labor cost, availability of advanced Type, trusted vendors are analyzed and the report has come up with recommendations for a future hot spot in four regions. The major states policies about manufacturing & Covid 19 impact on demand side are covered in the report.

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Scope of the Automotive Market in Mexico: Inquire before buying

Automotive Market in Mexico3
Automotive Market in Mexico Key Players

• BYD
• Volkswagen
• Toyota
• Nissan
• Fiat
• MAN SE
• Mitsubishi
• Mercedes-Benz
• Renault
• Honda
• Hyundai
• Kia
• Volvo
• BMW
• Subaru
• Chery
• Geely
• JAC Motors
• Lifan
• Peugeot
• Others

 

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