Automotive Industry is Mexico’s “Engine”: AMIA

Mexico’s automotive industry will continue to grow with the adoption of new industry trends driven by nearshoring, say several industry associations. Nearshoring is expected to attract numerous investments and further grow the industry’s role in the Mexican economy. 

“Mexico would obtain up to US$33.5 billion annually for [nearshoring]. Very good news for our economy after months of uncertainty,” writes Vladimiro de la Mora, President, GE Mexico, in MBN.

José Zozaya, President, the Mexican Association of the Automotive Industry (AMIA), tells Forbes that the Mexican automotive industry is the “engine of Mexico.” But to capitalize on it, the sector has to take a proactive approach and engage in productive dialogue with the government, academia and representatives of civil society, adds Zozaya. The automotive sector is “the industry that will bring the greatest opportunities to Mexico for the relocation of global supply chains,” says Zozaya.

Between 2014 to 2022, the automotive industry’s GDP represented a total of US$370 billion, according to Zozaya. Mexico is now the seventh largest vehicle manufacturer in the world and the first in Latin America.

Mexico exports most of its vehicles to the US, followed by Canada and Germany, according to AMIA. In March 2023, General Motors exported the most vehicles with 56,927 units, followed by Nissan with 39,242 units and Stellantis with 35,788 units, according to AutoCosmos. AMIA, which was created in 1951, works with the most important automotive companies in Mexico. The association works alongside Audi, BMW, Mercedes-Benz and a dozen more automakers to promote the industry’s growth and development, explained AMIA via its website. 

In Mexico, the automotive micro parts supply chain has benefited from nearshoring, as the National Institute of Statistics and Geography (INEGI) indicated that the auto parts industry grew by more than 10%, with US$4 billion in sales. Carlos González, General Director, Hultek, explained that sustainability trends and new on-demand mobility options will require more automotive micro parts suppliers, as each car requires at least 30,000 different parts to run various internal systems. The supply chain of vehicle micro parts is expected to receive US$11 billion dollars of new investments in 2023, as reported by MBN.