The automotive industry remains a strong pillar of Mexico’s economy, despite facing strong headwinds. Vehicle production and exports are still on the rise as companies ramp up or launch their manufacturing operations. The cloud of uncertainty that loomed over the industry has also somewhat dissipated after the signing of USMCA, although concerns remain due to its pending ratification in Canada and the US.
Regardless, investment continues to flow into the country, mostly from suppliers arriving to support the latest OEM entrants. Following ProMéxico’s closure, state governments and private players have picked up the slack to make sure the country remains an attractive investment destination. As the country reaches its full vehicle manufacturing potential, auto parts manufacturers are gaining confidence in stronger results for the coming years.
