The automotive industry and its impact on the Mexican economy
The automotive industry has experienced accelerated growth since it began operations in the early 20th century, consolidating further after signing NAFTA.
Throughout its journey, it has led to the adoption of 4.0 technologies, generating and accessing different data sources, performing remote diagnostics, supply, and materials tracking, as well as logistics and monitoring of operations at an early stage of the digital transformation process.
Nowadays, the automotive industry plays a key role in the country’s economy, and most interestingly, its growth outlook keeps expanding.
The automotive industry in modern Mexico
Worldwide, Mexico is the fourth largest exporter of auto parts, engines, vehicle bodies, and vehicles, reaching exports of more than $100 billion dollars1 in 2021.
In auto parts production, Mexico is the fifth largest exporter and the seventh largest producer of automobiles per number of units, with more than 3 million vehicles per year.
Furthermore, it is worth noting that over the last few years, the market share of vehicle exports has increased, surpassing 7% to date.
And because other countries have increased interest in attracting assemblers to access export benefits is high, and China remains one of the strongest competitors, Mexico retains a competitive advantage. It emphasizes the importance of industrial spaces in the national economy explaining how the automotive industry can develop its operations with all the advantages that this implies.
Why do industrial spaces matter in the economy?
Because the United States is the leading market for automotive manufacturers, it is essential to be geographically close to the industrial spaces where operations are conducted.
The main reasons to set up a Mexican industrial building are its well-established network of companies in this field, its participation in different trade agreements, and its skilled workforce.
Additionally, the constant innovation and technology implementation in the automotive industry must also be considered, making it essential to have industrial spaces with necessary equipment to produce optimally.
The trend of electric vehicles
The private sector and the government are currently collaborating to create the conditions for electric vehicle production and clean energy generation.
In the last decade, companies such as General Motors2 have realized the need to join this transformation and are already researching and designing projects to manufacture electric vehicles.
According to specialists, Mexico will have to invest in electric vehicle manufacturing3 to preserve its position as a leading vehicle exporter. And an essential feature for companies will be having industrial spaces equipped for this type of operation.
Industrial spaces designed to meet the automotive industry’s needs
At Advance Real Estate, we contribute to the automotive industry leadership by providing spaces ranging from industrial warehouses to Build-to-Suit projects, each tailored to the company’s operational needs and located strategically in Northern Mexico and the Bajio region.
Information Sources:
- www.solili.mx/noticias/…/5144
- www.forbes.com.mx/el-cambio-tecnologico-del-sector-automotriz-se-acelera
- www.forbes.com.mx/mexico-dejara-de-ser-potencia-exportadora-si-no-apuesta-por-autos-electricos-concamin
- www.oica.net
- www.concamin.org.mx/inicio
- dplnews.com/mayor-potencial-de-industria-4-0-en-mexico-es-en-el-sector-automotriz-itm
- advance-realestate.com/adblog/el-crecimiento-de-la-industria-automotriz-en-la-region-del-bajio%ef%bf%bc
