Mexico expected to surpass Canada and Japan as biggest exporters to US

Article by Anita Panait, on February 3, 2014

Mexico is primed to overtake Canada and Japan as the largest auto exporters to the United States.  In 1990, Mexico exported fewer than a quarter of a million vehicles to the US. But according to IHS Automotive, Mexico is expected to export 1.9 million vehicles into the US in 2015, effectively dethroning Canada as the biggest exporter of cars to the country.

The significant surge in auto exports from Mexico to the US has been boosted by lower tariffs under the North American Free Trade Agreement. For this year, Mexico is expected to overtake Japan as three Japanese carmakers -- Nissan Motor Co., Honda Motor Co. and Mazda Motor Corp. --  will open three sites in the Latin American country in four months.

Guido Vildozo, an IHS Automotive analyst, remarked that Mexico-built vehicles sold in the US will reach 1.69 million this year, topping the 1.51 million Japan-built vehicles. He added that by next year, Mexico-produced vehicles sold in the US will reach 1.9 million, topping Canada's 1.87 million.

"It's certainly a low-cost place to produce and there's a lot of comfort with the caliber of the workforce in Mexico," said Ron Harbour, a manufacturing analyst and partner at Oliver Wyman.

"In the late 80s and early 90s, what was coming in from Japan was overwhelming compared with what we thought about from Mexico back then. Obviously, things have changed." The new sites will produce new small cars like the Honda Fit and Nissan Sentra, boosting Mexico's share of the US import market for passenger vehicles and light trucks, pegged at $150 billion.

Topics: mexico, canada, japan, export

If you liked the article, share on:


Login or Create new account to add a comment!


Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016
Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016