Guanajuato Leads Mexico's Automotive Industry

In 2024, Guanajuato produced 896,000 vehicles, reinforcing its leadership in transportation equipment manufacturing in Mexico, according to the Ministry of Economy. The state achieved a production value of MX$658 billion, securing first place in the industry for the first time and surpassing Coahuila. 

Last year, the sector experienced 16.8% growth. One contributing factor is the presence of four major automakers, Honda, GM, Toyota, and Mazda, which has positioned Guanajuato as the only state in Mexico with this particular industry advantage. Additionally, companies like Ford, Volkswagen, Pirelli, American Axle, Michelin, Hirotec, Condumex, Continental, BOS Automotive, GKN Driveline, Schaeffler, Hutchinson, and Grupo Antolín manufacture components for a variety of car models.

During the same period, the state’s manufacturing sector achieved a production value of MX$1.2 trillion, securing second place nationally. The sector saw notable growth, with an 8.2% increase, outpacing the national average of 2.2%. Additionally, Guanajuato ranks fourth in the country for job creation, with 1.116 million residents enrolled in the Mexican Social Security Institute (IMSS).

US Tariff Threatens Guanajuato Auto Output, Jobs at Key Plants

Alejandro Rangel, General Secretary, Automotive Metalworking Industry Union (SITIMM), warned that US tariff could reduce vehicle production in the state, particularly at companies like Toyota, Honda, and Hino. Consequently, the union anticipates a reduction in overtime hours at automotive plants in Guanajuato.

Toyota’s Guanajuato plant, which exports 95% of its production, is particularly vulnerable to the proposed tariff. Similarly, Honda, which produces two vehicle models in the state, exports approximately 55% of its output to the United States. Rangel explained that while both companies experienced strong demand in 2024, the tariff could slow their momentum.

The potential impact on suppliers is another concern. Approximately 30 companies supporting Toyota and Honda plants in the region may face increased manufacturing costs, which could strain operations. "If a Tacoma truck costs MX$1 million (US$48,500) in Mexico, it would need to be sold for MX$1.25 million (US$60,625) in the United States, which could reduce demand for this model," Rangel explained.