The growth of the auto industry in Mexico will continue to surge as carmakers are bent on pouring more money into the country’s economy. So far, carmakers have invested or announced investments of around $20 billion into their operations in Mexico, as they try to take advantage of the country’s proximity to the United States, lower labor costs and free trade agreements.
In fact, vehicle exports from Mexico are expected to surge to 2.9 million this year -- over 70 percent of which are bound for the US, according to the Mexican Automobile Industry Association. In December 2014, exports jumped 21 percent year-over-year to 195,091 light vehicles and cars.
Trade group INA considers Mexico as the sixth-largest producer of auto parts in the world with an estimated $81.5 billion in sales last year. Eduardo Solis, the AMIA's president, remarked that the growth in production and in exports in Mexico has been spectacular, which reflects the confidence the industry has in the country.
According to Gerardo Rodriguez, a portfolio manager at BlackRock Inc. remarked that the growth pickup in the US will to be felt “first and foremost” in countries like Mexico.
He added that for this year, Mexico is one of the markets that are “looking attractive." One of the carmakers current operating in Mexico is Nissan. The Japanese carmaker produces Nissan Sentras at one of its plants in Aguascalientes, Mexico. The newly opened $2-billion facility and its 3,000-strong workforce build 600 new cars daily.