Automotive Investment Slows in 3Q25

Mexico’s automotive industry recorded US$953.9 million in investment across 45 projects from 12 countries during 3Q25, according to the latest Automotive Investment Report published by Cluster Industrial Media. The figure represents an 83.7% decrease compared with the same period in 2024, reflecting a more selective investment environment influenced by global constraints and anticipation of the upcoming USMCA review.

Despite the contraction, the report highlights continued strategic activity in auto parts, electromobility, and industrial real estate.The reconfiguration “is not a sign of weakness but of maturity in the ecosystem. Companies are prioritizing projects with regional integration and technological content beyond immediate investment volume,” says Ricardo Vivero, CEO of Cluster Industrial.

The report, sponsored by fintech Mundi, details that 58% of all projects between July and September were related to auto parts manufacturing, while original equipment manufacturers (OEMs) accounted for only 5%. Total direct automotive investment reached US$672.5 million in the quarter.

Tier 1 and Tier 2 suppliers received US$585.4 million during the period, including new facilities by UTAS-NOVA (China) in Aguascalientes, HCMF (Taiwan) in Coahuila, and Mubea (Germany) in Guanajuato. Electromobility-related investments totaled US$393.8 million, led by Bayon Precision Automotive (China) and Sinbon Electronics (Taiwan) in San Luis Potosí.

Industrial real estate showed greater resilience, attracting US$281.4 million — 17.8% of total projects — and adding 493 hectares under development. Domestic developers MEOR, Marabis, and Grupo Desarrollador ESFO led this segment, reports Cluster Industrial.

Asian capital remained dominant. China invested US$152 million in electronic and aluminum automotive manufacturing, despite an 87.8% decline. South Korea increased its technological presence through LG’s US$190.6 million project in Queretaro and Kyungshin Cable’s US$50 million facility in Durango. 

After visiting South Korea and attending the APEC forum on Nov. 1, Mexico’s Minister of Economy Marcelo Ebrard said the country faces “a giant opportunity” to attract Asian investment through nearshoring and global supply chain shifts. “A stage of growth is coming with a giant opportunity for Mexico. But we must take it, because it won’t happen on its own,” he said. 

Cumulatively, from January to September 2025, Mexico recorded US$5.75 billion in automotive investment — a 57.7% drop compared with 2024 — but the number of projects rose slightly by 1.27%. With 1,867 hectares of industrial space under construction, up 13.4% year-over-year, the sector is preparing for the next expansion phase expected in 2026.

Julio Galván, Economic Studies Manager, INA, warned that Mexico must improve infrastructure, security, and legal certainty to maintain its nearshoring advantage. “We are reaching a point of either collapse or expansion in infrastructure,” he said at the Mexico Business Summit.