Mexico’s automotive industry goes from strength to strength:
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.
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.
Lastly, the market research report provides a regional comparison and a complete country – level analysis for the latest trends, along with the major key players in the white automotive market, across the country.
You can browse the market data Tables and Figures spread through a comprehensive research report and in-depth TOC on “Mexico Automotive Market”.
https://www.maximizemarketresearch.com/market-report/automotive-market-in-mexico/86993/
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