The global automotive industry is in flux. North American players are having success in China while floundering at home. Japanese players are meeting with success in North America while remaining relatively passive about the ever-wakening automotive giant in their own back yard -- China. Toyota and Honda bring a little boom to the gloom. They both are leaders in the development of hybrid technology which, as fuel prices soar, will almost certainly be a key product strategy as time goes on. What about Mexico...
Mexican Automotive Industry
The world’s largest automotive players have manufacturing facilities in Mexico, located primarily in northern and central Mexico. U.S. suppliers have found that investing in Mexico with facilities has provided a more cost-effective, yet high quality workforce. In recent years, the Mexican auto industry has created substantial sales opportunities for all suppliers. Mexico’s nearly 1,400 Tier 1, 2 and 3 suppliers imported $22.8 billion in materials, equipment and parts, representing 7 percent of Mexico’s total imports in 2002. That same year, the auto industry accounted for 3.5 percent of Mexico’s GDP and 19.3 percent of its total manufacturing output.
Mexico's economic liberalization has resulted in unprecedented growth of the Mexican auto and auto-part industry turning it into a world-class player. Its success can be measured both in terms of increased exports and investment, which has contributed to the modernization of the sector. In 2001, Mexican total exports surpassed US$ 33 billion dollars in automotive products more than six fold the figure reached in 1990.
Opportunities In Mexican Export Business
In 2001, Mexico's auto and auto-part exports to the U.S. nearly tripled in comparison to 1993, surpassing US$ 29 billion, and Mexico's share in total U.S. automotive imports has more than doubled reaching 15% last year. Likewise, Mexico’s imports of U.S. auto and auto-parts have soared, reaching US$ 16 billion in 2001. Today, Mexico is the second export market for U.S. automotive products.
Opportunities In Mexican Import Business
The biggest driver of the Mexican auto industry over the next decade may be the domestic market, which seems poised for a period of dynamic growth. Mexico's domestic car sales through April were up 11.2% from the same four months last year and are on a track to top 1 million units for the year. Igniting the market are new offerings of affordable compact and subcompact cars that sell for less than $10,000. At the same time, Mexico is lowering its import barriers to let in more cars made in Europe and elsewhere in Latin America.
Are you ready to particpate in these opportunities?
Do you need a licensed Mexican import export business partner?
JACI can help you!
Contact us for more information by emailing sales@jaci-sa.com for assistance.
