In recent years, there have been shifts in the automotive industry in terms of vehicle technologies and factory production across the globe. Mexico has become one of the prominent figures in advancements in machine technologies and is flourishing in the fields of semiconductors, aerospace, and especially in the automotive manufacturing industry.
Mexico is quickly becoming a nearshore manufacturing destination for many companies because of its resources, cost-effectiveness in terms of operations, its source as a quality provider of OEM auto parts, and its ability to meet their automotive needs.
El Grande Group – your manufacturing partners in Mexico – want to help you develop the right tools, strategies, and manufacturing solutions to benefit from this developing industry. With our state-of-the-art industrial park, flexible programs designed to meet your specific manufacturing needs, and business support services, you can turn your manufacturing company into a leading global producer.
The Mexican auto-industry manufacturing industry currently ranks as the fifth largest in the world, following closely behind China, the United States, Japan, and Germany. Sales for 2018 are expected to reach $90 Billion US Dollars.
The number of automobiles being produced continues to grow swiftly. Year-to-date, auto production in the country has increased by 0.7 percent to an outstanding 1.96 million vehicles being produced.
Mexico currently has 1,300 automotive factories with about 820,000 workers.
Because of the strict import regulations that Mexico’s automotive industry has established, the number of used cars available for sale has declined – thus propelling new auto sales within the country as well. Major companies have localized their sales in Mexico because new car purchases are in demand with the reduced import availability, making for a very prosperous market.
According to the Robotic Industries Association, Mexico ordered over 6,000 industrial robots in the year of 2015. Not many countries are investing in this kind of machinery yet.
Mexico’s Manufacturing Relationship with America and Canada Remains Steady
75 percent of all the products produced in Mexico are sold to neighboring countries, especially the United States and Canada. While there is still a lot of uncertainty surrounding NAFTA renegotiations, US companies continue to invest in Mexico.
A US company would save an average of $20,000 US dollars by moving their operations into Mexico. Twelve major companies have recently moved to Reynosa, a Mexican state along the eastern United States Border. Some major companies that manufacture vehicles in Mexico include Audi, Fiat, Chrysler, Ford, General Motors, Honda, Kia Motors, Mazda, Nissan, Toyota, and Volkswagen.
The global auto industry is a continuously evolving sector. Eco-friendly vehicles such as hybrids or electric cars are becoming more popular. These expanding technologies signify a greater need for specialized production and machinery. With Mexico’s access to the newest and most advanced machines, it would be profitable for companies to invest in locating their factories here.
And though the country trails slightly behind the United States in car part sales, the two countries are very close and intertwined. With 20 years of integration due to NAFTA – Mexico, America, and Canada have established meaningful and necessary supply chain relations within the automotive industry. Many of the cars imported to the US from Mexico are composed of car parts that were created in US factories. This assembly shows just how collaborative and dependent the countries are in the automotive realm.
Auto-industry manufacturing in Mexico has propelled significantly and continues to rise – even with issues regarding NAFTA. Major companies are not retreating from the country, and many more continue to establish significant plans for developing automotive manufacturing plans in the years to come.
Ready to expand your automotive manufacturing company into Mexico? Let El Grande Group get you off the ground.
Contact our international manufacturing experts today at 1-646-300-9401.