With a production of 1.5 million units, Mexico is the 8th largest manufacturer of vehicles in the world, after Brazil. However, with data from the industrial associations of the country, it is estimated that in 2018, Mexico will be the 7th largest, according to the growth rates and development of this industrial sector.
Among the main automotive manufacturers in the world are, first China with a production of 10.7 million, followed by the US with 5.6, Japan with 4.6, Germany with 2.8, South Korea with 2.2, India with 2.02 and Brazil with 1.8 respectively.
In recent years, Mexico has attracted an amount of direct foreign investment totalling more than 24 billion dollars, attracted mainly by the installation and expansion of current original equipment manufacturers (OEMs) such as Nissan, Volkswagen and Honda, as well as the installation of new manufacturers such as Mazda and Audi.
Mexico’s growth strategy is based on the strengths of the country, according to the industrial associations. The main advantages continue to be its geographic location and trade agreements, given that it is the neighbour of one of the major world markets, the US, has been a determining factor in several OEMs investing in the region.
Another of its strengths is the supplier base of the country, which allows high levels of competitiveness to be reached, and lastly, but by no means less important, the qualified personnel in the region, at both a technical and engineering level.
All the OEMs that have begun operation or have expanded in the country, source and develop a supplier base in the same region to satisfy the demands of their requirements with the aim of guaranteeing their supply chain and making it more efficient.
One of the regions with a high potential is that of Bajío (Guanajuato) and the state of Querétara, where companies like Honda and Mazda are developing world class suppliers for the Tier 1, Tier 2 and Tier 3 chain.
IKOR Mexico has been working together with this supplier chain for several years, participating as a supplier for Tier 2 and Tier 3 customers, which demand a high level of service and quality and very high competitively. Many of these productive processes, audited and approved by our customers, have played a key role in the growth of the sector and have formed part of this interesting and challenging project, which is the automotive industry in this country.