Mexico has few economic boom and success stories like the one in the automotive industry.

From its insertion at the beginning of the 20th century and its turning point in the 1960s until its consolidation with NAFTA, the production of vehicles has been a defining factor in the history and industrial progress of the country.

Mexico is an international giant in the production and export of automobiles, and the figures indicate that it has an even more encouraging future.

In the first place, Mexico has become a net exporter of auto parts, achieving a trade surplus in this area of 4.5 billion dollars according to the International Trade Center.

One of the main problems that Mexico presented at the beginning of the century is that, despite having an established automotive industry, the country imported too much of the parts, machinery and equipment to manufacture its vehicles, which meant that much of the value added in exports of cars was carried out abroad.

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In 2012, the country had a trade deficit in auto parts of 1.5 billion dollars. The country not only managed to turn this situation around with a considerable trade surplus, but today it is the fifth largest international exporter of vehicle parts.

The second factor that extols the role of Mexico in the world is that in the last decade Mexico has increased its market share in world vehicle exports from 5.3% to 7.7%.

The country has also remained the fourth largest international trader, exporting more than 115 billion dollars in vehicles, auto parts, engines and bodywork in 2021.

This is an extremely encouraging figure considering the incessant competition at the international level to attract automotive assemblers and benefit from their exports, not to mention the growing presence of China in this market.

In the third instance, the country has firmly established itself as the seventh largest car producer by number of units, reaching 3 million 145 thousand vehicles per year according to the OICA. In comparison, Germany, in sixth place, produces only 4.5% more units than Mexico, while Brazil is distantly in eighth place with 28% less manufacturing.

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Mexico offers automotive companies the perfect place to develop due to its proximity to the United States (the largest consumer market in the world), its established industrial network, extensive trade agreements, and relative political and economic stability.

Finally, the automotive sector, the private sector and the Mexican government must work together to integrate and take advantage of the nascent sustainable industries. Specifically, it is necessary to create synergies between the production of electric vehicles, the lithium industry and clean energy generation.

Each of these sectors drives the other and has the potential to create hundreds of thousands of jobs in Mexico and advance efforts to address the climate crisis. It is evident that Mexico has firm foundations and enormous potential in the automotive industry.

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Original note