AUTOMOTIVE IndUsTrY In MExIcO Ready to Overtake - ProMéxico

20 Negocios ProMéxico Negocios ProMéxico 21
For all these reasons, the world’s major automakers are expanding
or establishing operations in Mexico. For example, Ford recently
announced that it will invest 1.3 billion usd in Hermosillo, Sonora.
Meanwhile, Nissan’s investment in the country will be in the order
of two billion usd. Likewise, Honda will allocate 800 million usd to
Mexico to open a new plant, while Mazda announced an investment
of 500 million usd.
A story of singular importance is the announcement by Audi AG, a
Volkswagen group company, that it will invest approximately two billion
usd in its first SUV plant in Mexico as part of its strategy to compete
against rivals BMW and Mercedes Benz. The expected arrival of
Audi to Mexico will increase the competitiveness of the company and,
to a large extent, bring it closer to its goal of selling two million cars
by 2020. The location of the plant will be announced in the coming
months but it is worth noting that, despite having the option to install
its plant in other countries like the US, the German company is betting
on Mexico, where it plans to start operations in 2016.
These investments confirm the evolution and relevance of the
Mexican automotive industry. Companies in the sector worldwide
recognize that Mexico offers excellent infrastructure, competitive
costs, world-class manufacturing and a long tradition and experience
within the sector.
X-ray of the meXican automotive industry
The Mexican states that contribute most to the automotive
industry are those on the northern border, with 47% of total
production, a situation that is stimulated by their proximity to
the US market. In terms of vehicle production, there is a cluster
in the center of the country that holds 43% of the total, while the
northern cluster contributes 57% of the total.
The importance of the automotive industry for Mexico’s economy
is unquestionable. The sector contributes 3.6% of the Gross
Domestic Product (GDP), 20.3% of manufacturing GDP and 28.4%
of the country’s manufacturing exports. It is also one of the largest
employers with over 550,000 direct and indirect jobs.
The outlook for the Mexican automotive industry in the
short term is positive. It is estimated that in 2012, 2.7 million
vehicles will be produced and domestic sales will reach approximately
930,000 units, which means an annual increase of
6.3% and 2.6% respectively.
Also, considering its dynamism, it is expected that by 2015
the automotive sector will double the number of direct and
indirect jobs it currently generates. For its part, the projected
market growth for auto parts is between seven and 10% by the
end of 2012.
in 2010, Mexico was the ninth largest car
producer in the world and served as an
export platforM for Many of
the Major car Manufacturers and their
suppliers. by 2011, Mexico stood in eighth
place aMong the top global autoMotive
Manufacturers.
Innovation is a key factor for generating new technologies
and intelligent solutions to address challenges such as protecting
the environment. The training of human capital in this
new scenario is essential to strengthen the sustainability and
competitiveness of businesses, the creation of jobs and the
improvement of people’s income and quality of life. In that
sense, aware of the opportunities this scenario generates and
considering the installed capacity in addition to the human and
material resources that the country possesses, the Mexican
authorities are ready to venture into new product development,
meeting the required quality levels to ensure that the automotive
industry remains a backbone of national development. n
*Professor and researcher in the Political and Social Sciences Faculty,
National Autonomous University of Mexico (UNAM).