The Bajio region is an economic pillar for the country, and this is in part because some states in this region (such as Guanajuato, San Luis Potosi, Queretaro and Aguascalientes) are leaders in production and exportation of the automotive industry.
This type of industry is key to the country’s growth and an area of opportunity for both domestic and foreign companies that want to take advantage of the potential of the automotive industry in Mexico.
Automotive Industry: Bajio and its Figures
First off, Bajio plays a major role in the financial strengthening of the country. Its economic impact from 2010-2019 resulted in 4% annual growth of the regional Gross Domestic Product (GDP).1 This is due to strength in sections such as finance, communication, electronics, insurance, computing and, of course, the manufacturing industry, where the automotive market belongs.
Relating to automotive markets, the Mexico, United States and Canada Agreement (T-MEC) revealed a new benefit in 2019. It ushered in an increase in the Regional Value Content (RVC) projected to reach 75%2 by 2023 for cars and trucks.
But that’s not all; the RVC is also defined as part of T-MEC’s Rule of Origin. In addition to promoting the growth of value for automotive production, it requires that the 7 of the essential parts3 of a vehicle’s assembly (chassis and body, engine, axles, advanced batteries, suspension, transmission and steering) are made in the region.
Automotive market as an area of opportunity
The above implies many potential direct suppliers of auto parts can easily contribute to and comply with the Rule of Origin, which continues to give impetus to the automotive market and encourages dynamism in the Mexican economy. The Bajio region is a strategic place to install an industrial park focused on the automotive market.
One practical example of how relevant this area is for the automotive industry (Bajio) comes in the first half of this year (2021). A couple of leading manufacturers in the region excelling at production, sales and exports, Nissan and General Motors, had sales of 108,600 and 75,235 vehicles,4 respectively. A significant increase over the first half of 2020. This demonstrates the growth and recovery of the automotive industry.
The strength of this territory has great potential for the future, in addition to the attractiveness of having a space in an industrial park and the possibility of continuing to grow the automotive industry.
Suppose this is a business option that interests you. In that case, Advance Real Estate has several industrial parks in the Bajio region (Guanajuato, Queretaro and Guadalajara), so that you can choose the most suitable space for your company’s needs and growth objectives.
Information Sources:
- www.eleconomista.com.mx/estados/Bajio-con-el-mayor-dinamismo-economico-en-la-ultima-decada-20201209-0157.html
- www.camescom.com.mx/el-sector-automotriz-potencial-crecimiento-en-la-region-bajio
- www.jetro.go.jp/ext_images/…/ESP_20200921_TMEC_RO.pdf
- www.liderempresarial.com/automotrices-del-bajio-lideres-en-el-primer-semestre-de-2021
- mexicoindustry.com/noticia/se-informa-a-la-region-bajio-sobre-las-ventajas-del-t-mec
- www.advance-realestate.com
