Abstract
Report Overview
One of the largest contributors to the country' s economy has been the
automotive industry. The industry has gained a strong position globally over
the years and is expected to continue its contribution to the national
economy. According to Banamex, in 2008, nearly 4% of the national GDP came
from the automotive industry, while it contributed 16% to the manufacturing
GDP. In 2008, automotive industry was the only manufacturing activity in the
country that saw a double-digit growth and generated 20% of the total
manufacturing exports from the country.
At the same time, the industry has created job opportunities for almost a
million people in the country, accounting for 13.5% of the total industrial
employment. Nearly 55,000 people are employed with the OEMs and 433,000 in the
auto component production sector. The automotive industry in Mexico is spread
across the country. The automotive demand in the country is strong, with one
million vehicles being sold per annum. The market is flooded with close to 40
brands and more than 300 different models of cars, including domestically
produced and imported from outside markets.
Detroit Three have been the front runners of the industry. Nearly 54% of the
total national production is from the nine plants operated by Chrysler, Ford
and GM in the country. Post 1994, Detroit Three' s role in Mexico increased. At
the same time, other OEMs such as Nissan and Volkswagen have also created
their own market in Mexico. Both Nissan and Volkswagen have shifted certain
production operations to Mexico, thereby creating ample growth opportunities
for the auto parts suppliers.
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