Volkswagen and Audi Plan to Invest in Puebla

Puebla is seeking more than US$2 billion in investments from Volkswagen and Audi to advance their automotive manufacturing projects and accelerate the transition to electromobility. The plans include a second investment phase at Volkswagen’s plant in Cuautlancingo, as well as Audi’s investment in electric vehicle production at its facility in San José Chiapa.

The projects were presented by the Secretariat of Economic Development and Labor (SEDETRA) to German Ambassador to Mexico María Margarete Gosse during her first official visit to the state. The initiatives are part of the industrial partnership between Puebla and Germany.

According to estimates provided by SEDETRA, Volkswagen is expected to invest approximately US$1 billion, while Audi plans to allocate around US$1.1 billion to its operations in Puebla. Combined, the investments could total approximately US$2.1 billion.

The projects are expected to support the expansion of both automakers’ operations, create opportunities for suppliers, drive industrial restructuring, and strengthen the training of specialized talent in the state.

Audi plans to invest approximately US$1.1 billion in its San José Chiapa plant to strengthen production of models such as the Audi Q5 SUV e-hybrid quattro and the Audi Q5 Sportback e-hybrid quattro. The project is expected to generate more than 5,200 direct jobs, further consolidating the automaker’s presence in Puebla.

Meanwhile, Volkswagen plans to invest approximately US$1 billion in a second phase of development at its Cuautlancingo plant, aimed at expanding its operations in the state.