Nissan Consolidates Mexico Production in Aguascalientes

Nissan has completed a long-term shift of its manufacturing operations in Mexico from the CIVAC plant in Morelos to Aguascalientes, a move driven by labor costs, logistics and supplier concentration that has reshaped the automaker’s industrial footprint in the country.

The Japanese automaker began operations in Mexico in 1966 with the opening of its CIVAC plant in Ciudad Industrial del Valle de Cuernavaca, marking its first manufacturing facility outside Japan. For decades, CIVAC served as Nissan’s main production hub, assembling models such as the Bluebird 411, the first vehicle Nissan built in Mexico, and later supporting the company’s expansion in the domestic market.

That central role began to change in the late 1990s as Mexico’s automotive industry reoriented toward export manufacturing and the Bajío region gained prominence. Production gradually shifted north, aligning with the expansion of auto parts suppliers and logistics corridors in central Mexico.

“Aguascalientes was strategically an indispensable point to supply that backbone of automobiles to North America. Nissan saw that and invested there starting 40 years ago,” said Eric Ramírez, director of Urban Science for Latin America and the Caribbean.

Aguascalientes is now the ninth-largest auto parts producer in Mexico, with output totaling US$4.046 billion so far this year. That industrial ecosystem supported Nissan’s decision to centralize manufacturing in the state. In December, the company announced it will begin producing the NP300 pickup in Aguascalientes, a model manufactured in Morelos for more than two decades.

Analysts say the decline of CIVAC was gradual but foreseeable. Beyond supply chain advantages, labor dynamics played a role.  Labor costs in Aguascalientes are 28% lower than at the Morelos plant, according to Rogelio Padilla, head of the automotive and mechanical industry union.

While CIVAC remained operational, rising labor costs reduced its competitiveness. During the 1980s, Nissan benefited from agreements that designated CIVAC-produced Tsuru models as taxis nationwide, sustaining volumes. However, expansion plans increasingly focused on Aguascalientes, including the Compas complex developed with Mercedes-Benz.

Willebaldo Gómez, an economist specializing in labor issues interviewed by Expansión said that production declined sharply from the late 1990s through the 2000s. CIVAC’s workforce fell from about 5,000 employees at its peak to roughly 1,400 in its final stage. Labor disputes, including a strike threat in 2016 and a strike in 2017, further disrupted operations. Wage growth also diverged: in 2024, CIVAC recorded a 9.1% increase, compared with 4.8% in Aguascalientes.

Today, Nissan views Aguascalientes as the backbone of its Mexico operations, supplying both domestic and export markets, including the United States and Canada. The company has not yet returned to its 2016 peak of more than 850,000 vehicles produced annually.

Nissan is now focusing on fewer, high-volume models. “It is betting on Versa, Sentra, a new pickup including Frontier and NP300, as well as Kicks, to consolidate volume, maintain exports and sustain its leadership in Mexico,” Ramírez said.

In 2025, Nissan Mexicana maintained its position as Mexico’s top-selling automaker, driven by strong SUV demand and locally produced models. From January to November, the company sold 246,279 vehicles, a 6.7% increase over the previous year, surpassing the industry average while other brands saw declines. Nissan also exceeded its target of selling more than 25,000 units per month and grew its market share by one percentage point, highlighting the strength of “Hecho en México” vehicles in sustaining domestic growth.