Coahuila Attracts New Automotive Investment

Summary: Coahuila is consolidating its role as a leading manufacturing hub in northern Mexico through new automotive investments, including an MX$800 million project by Daimay Automotive and a US$60 million aluminum components plant by China’s Yongmaotai, expanding the state’s automotive supply chain and job base. The developments extend industrial activity into new municipalities, strengthen integration with global value chains and support both internal combustion and electric vehicle platforms amid nearshoring trends. Strong formal employment indicators and local government emphasis on legal certainty, infrastructure and logistics reinforce Coahuila’s competitiveness for domestic and foreign investors.

Coahuila continues to strengthen its position as one of Mexico’s leading industrial states, supported by new automotive investments, expanding employment and growing confidence among domestic and foreign manufacturers. Recent announcements across multiple municipalities highlight the state’s diversified economic strategy and its appeal as a competitive manufacturing hub in northern Mexico.

Daimay Automotive Launches First Plant in Parras

Signaling the expansion of industrial activity beyond Coahuila’s traditional manufacturing centers, Daimay Automotive inaugurated its first plant in Parras de la Fuente, reinforcing the municipality’s role in the state’s economic diversification strategy.

The new facility marks Daimay’s entry into the region and integrates Parras into the automotive supply chain. Company executives said the plant strengthens Coahuila’s industrial corridor by extending manufacturing activity into new geographic areas and linking the municipality to global automotive value chains.

The opening ceremony was led by Governor Manolo Jiménez, who said the plant is the first of three Daimay facilities planned for the region. The project represents an investment of more than MX$800 million and is expected to generate 2,500 jobs once all three plants reach full capacity.

State and municipal officials said the arrival of Daimay reinforces Parras’ industrial vocation and expands employment opportunities in a municipality that has shown steady economic growth in recent years.

Economic authorities said the project reflects the state’s consistent approach to attracting new investment and maintaining a favorable business environment. Luis Olivares, Coahuila’s Minister of Economy, said the inauguration confirms that the state remains on a clear path in terms of investment promotion. “This project shows that things are being done right in Coahuila,” he said, citing legal certainty, infrastructure and workforce quality as key advantages.

The Daimay plant adds momentum to the industrial ecosystem in the state’s Southeast region, reinforcing Coahuila’s reputation as one of Mexico’s most competitive and secure destinations for manufacturing investment.

Chinese Auto Parts Supplier Yongmaotai Announces US$60 Million Investment

In parallel with Daimay’s expansion, Coahuila continues to attract foreign direct investment from Asia, particularly in the automotive sector. Shanghai Yongmaotai Automotive Technology announced plans to invest nearly US$60 million in a new aluminum auto parts manufacturing plant in Ramos Arizpe, a project expected to create 600 direct jobs. The facility will produce aluminum alloy components for the automotive industry, supplying vehicle manufacturers and Tier 1 suppliers operating in Mexico, reported MBN. 

Ramos Arizpe Mayor Tomás Gutiérrez said the project aligns with the municipality’s industrial development strategy and efforts to integrate new suppliers into Coahuila’s automotive ecosystem. State and local officials said the investment further consolidates Ramos Arizpe’s role as a key manufacturing center in northern Mexico.

Coahuila Minister of Economic Development Jacobo Zertuche Cedillo said the plant is expected to begin operations in the coming months. He noted that Yongmaotai’s global experience and diversified product portfolio will support its integration into Mexico’s highly competitive automotive market, including both internal combustion and electric vehicle platforms.

Founded in 2002 and headquartered in Shanghai, Yongmaotai specializes in the design, casting and machining of aluminum components used in engines, transmissions, braking systems and vehicle structures, with capabilities aligned to international efficiency and sustainability standards.

Torreón Reports Rising Investor Confidence

Beyond the automotive sector, broader economic activity is gaining traction across the state, particularly in Torreón, where multiple companies are preparing to establish operations. Mayor Román Cepeda said roughly a dozen firms are considering investments in manufacturing, information technology and other sectors, driven by improvements in public safety, legal certainty and air connectivity. The projects are expected to generate well-paying jobs and further diversify the local economy, reported MBN. 

“There is diversity in our economic development, which allows us to adapt to different business needs,” Cepeda said, adding that flexibility enhances the region’s resilience and attractiveness to investors.

Looking ahead to 2026, Cepeda said economic expectations remain positive, with municipal authorities committed to supporting new investments through infrastructure upgrades, improved public services and regulatory certainty.

He also highlighted joint mobility and road infrastructure projects aimed at improving logistics efficiency and quality of life, as well as Torreón’s strong health care capacity, which ranks second in northern Mexico after Nuevo León. The city’s network of higher education institutions and expanded airport services continue to strengthen its position as a competitive destination for domestic and foreign investment.

Coahuila Leads Mexico in Formal Employment

The state’s investment momentum is underpinned by strong labor market indicators, positioning Coahuila as a national leader in formal employment. According to the latest National Survey of Occupation and Employment (ENOE), 66.7% of Coahuila’s workforce is employed in the formal economy, the highest rate nationwide and well above the national average of 44.6%.

Coahuila Labor Minister Nazira Zogbi said the state improved its ranking compared with the previous quarter, when formal employment stood at 65.8%. She said the increase represents more than 13,000 workers entering the formal labor market.

Beyond formal employment, ENOE data places Coahuila first nationwide in access to health institutions, with 78.3% of workers affiliated, and in written employment contracts, with 76.8% of employees covered. Officials said these indicators reflect a stable labor environment that supports long-term economic growth and household welfare.