Mexico’s Automotive Industry

Mexico is one of the global leaders and the fastest growing country in the automotive manufacturing in the world, with low cost labor, high quality production, its proximity to the U.S. through the USMCA (United States – Mexico – Canada) commercial treaty executed on July, 1st 2020, before called NAFTA (North America Free Trade Agreement) that benefited the Industry.

In 2021, production in Mexico is estimated to be 5 (five) million units.

The car manufacture plants are located in 19 different States in Mexico, at the interior or Mexico at the Bajio area, in the northern-eastern part of Mexico in cities such as Monterrey and  Saltillo, among other cities there is a robust supply chain of tier 1, 2, and 3 companies who both supply local markets and export their goods to the United States and different countries with competitive advantage and better profitability.

In the northern-eastern of  Mexico/U.S. South Texas border (Matamoros, Reynosa and Nuevo Laredo)  there are more than 200 companies that manufacture different products for the assembling plants, in the northern-central /West Texas border (Ciudad Juarez) there are more than 50 companies and in the northern-western/South California border (Tijuana, Mexicali) there are more than 83 companies that produce products such as: Dashboards, Steering wheels, harnesses, safety systems, sensors, break system, hvac systems, suspension systems, automotive steel sheet, light duty cables as many other products with companies such as: MAGNA, DELPHI TECHNOLOGIES, INTEVA, VALEO, TRICO, PANASONIC, LINAMAR, EATON, POSCO, ITW, HILTI, KONGSBERG, AUTOLIV, DURA, APTIV, LEAR, BOSCH, BRP, CONTEC, YAZAKI, HANNON SYSTEMS, CONTINENTAL, BORG WARNER, NIDEC, AUTOMOTIVE, LIGHTING, among many others.