United States Leads Automotive FDI Investment in Mexico

The United States accounts for 31.9% of automotive FDI in Mexico, raising concerns among investors over US President Donald Trump’s tariff threats on Mexican imports. In other news, Guanajuato produced over US$658 billion in automotive-related value in 2024, making it the leading state in automotive production for the first time in history.

Ready for more? This is your Weekly RoundUp! 

US FDI Makes Up One-Third of Mexico’s Auto Sector

The United States accounted for 31.9% of total foreign direct investment (FDI) in Mexico’s automotive sector, raising concerns among investors following US President Donald Trump’s recent proposal to impose a 25% tariff on vehicles. 

2025: Automotive Financing, Economic Context, and Electromobility

Edgar Aragón, Marketing Director, BitCar, notes that while the positive trend in automotive financing in Mexico during 2024 was impacted by the new US administration and its effect on consumer confidence, the automotive sector continues to grow. This growth is driven by an increase in the variety of brands and models available, particularly from China, and the rising demand for green vehicles, which will be a priority over the next six years.

Nemak Stock Drops 4%; CEO Weighs US Shift Amid Tariff Risks

Nemak, a manufacturer of aluminum components for electric and combustion engine vehicles manufacturer Nemak, saw its stock value drop 4% following lower-than-expected revenue. The company is evaluating the potential relocation of part of its Mexican production to the United States if new tariffs are imposed by the US government.

Supplier Development in the Auto Sector: A Commitment to SMEs

Francisco González, Executive President, INA, says the auto parts industry in Mexico is a key player in the country’s economic growth, ranking as the fourth-largest producer globally and the main supplier to the United States. With exports representing 87% of national production and over 880,000 jobs created, the sector is focused on integrating more domestic suppliers into global value chains through initiatives like the Supplier Development Program (PDP), which aims to enhance competitiveness and support the goals of Plan Mexico 2030. 

A Strategic Approach to Logistics Drives Competitiveness

Alfonso López, Vice President Contract Logistics Mexico, CEVA Logistics, notes that Mexico's strategic position has made it a key hub for the company’s operations. López highlights the growing importance of nearshoring and the role of technology and automation in improving operational efficiency. He also points out that the automotive sector remains a critical part of CEVA’s business in Mexico, with the company supporting established and new manufacturers in optimizing their supply chains. 

Challenges Will Shape the Mexican Auto Sector in the International Market

Miguel Villalpando, Vice President of Sales and Marketing at VIAS3D, notes that the Mexican automotive sector faces significant challenges. With potential US tariffs, changing trade agreements, and the transition to EVs, the country’s automotive industry must adapt to maintain competitiveness. The next few years will be crucial for Mexico to adjust to these shifts and secure its position in the global market, he adds.

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.