The Mexican automotive industry has experienced a prosperous start to 2024 in a race that has seen it achieve very positive figures since the beginning of the decade. January of this year saw a peak with 307,069 light vehicles manufactured, marking the highest figure in the last five years and a 9.6% increase over January last year. Meanwhile, exports reached a record 254,367 cars according to INEGI data, representing a 6.8% increase compared to the same month in 2023.

This is no coincidence; the Mexican Association of the Automotive Industry attributes the high export numbers to a global industry that has clearly rebounded post-pandemic. This outlook reflects solid progress in production and exports, which could continue to accelerate thanks to opportunities such as nearshoring. If current trends persist and considering the growing production of electric cars, Mexico is estimated to manufacture 4.1 million units and export an additional 3.5 million by the end of 2024.

The United States, China, and an Industry in Constant Transformation

The relationship with North America plays a crucial role for Mexico's automotive industry. Out of the total vehicles manufactured in January this year, 205,523 units were destined for the United States. Mexico remains the main supplier to the U.S. market, accounting for 19.1% of its vehicle imports. However, signs suggest changes may be on the horizon.

Meanwhile, the Chinese electric vehicle market continues its global expansion. Ministry of Economy data show that Foreign Direct Investment from China, previously negligible, has become the third largest, trailing only behind the energy and computer sectors. This growth coincides with the consolidation of brands like MG, JAC, and Chirey as top-selling Chinese brands in Mexico. Others such as Changan, Omoda, and BYD are also gaining prominence, with BYD recently launching its Dolphin Mini model, the most affordable electric vehicle in Mexico, causing ripples among U.S. competitors.

Despite the United States announcing new tariff increases on electric vehicles, semiconductors, batteries, and steel imports from China, Asian brands continue to rise as global automotive leaders, reshaping the market and viewing Mexico as a strategic trade ally due to its geographic location and skilled workforce. Tesla is restructuring plans for a new facility in Monterrey, while BYD has overtaken it as the world's largest electric vehicle manufacturer.

Mexico's advantageous location, coupled with nearshoring trends, has attracted numerous foreign companies seeking to maintain access to U.S. markets while reducing geographical distances to the North American giant. This positions Mexico as a key player in the international market. Argentine steel company Ternium announced a $3.2 billion investment in the region, and Amazon's AWS subsidiary declared a $5 billion investment, highlighting significant foreign commitments in the area.

Grupo FRISA: Your Strategic Ally

Grupo FRISA is a strategic ally offering specially designed spaces to foster development, productivity, and growth. Our industrial cities are strategically located across Mexico's main corridors and have been developed with a focus on innovation and sustainability. We implement tailored strategies that meet the evolving needs of the industry, aligning with current and future expectations for responsible automotive production. Contact us to explore how we can support your growth.