Mexico’s automotive industry attracts record FDI in 2017
During 2017, the automotive industry established in Mexico captured the largest Foreign Direct Investment (FDI) in its history, despite the uncertainty caused by the renegotiation of the North American Free Trade Agreement (NAFTA).
Data from the Ministry of Economy (SE) shows that 23% of the total FDI drawn by Mexico during 2017 was destined to the manufacture of automobiles and auto parts, totaling US$ 6.86 billion.
This is the largest flow of capital entering from abroad since there are comparable figures, starting in 1999. That figure also represents a US$ 1.8 billion increase, or 35%, compared to 2016.
The production of light and heavy vehicles captured US$ 3.35 billion in 2017, a historical record, and almost half of the investment in the sector.
The other half, US$ 3.51 billion, was invested on the manufacture of parts for motor vehicles and represented the highest figure in two years.
In recent years, Mexico has drawn attention from the main players in the automotive sector due to its strategic geographical position, preferential access to new markets, competitive advantages in skilled and competitive labor, its extensive supply chain, as well as the sustained growth in the production of vehicles and auto parts.
The country produced 3.93 million light vehicles last year, a historic high, according to data from the Mexican Association of the Automotive Industry (AMIA).
The Ministry of Economy expects the country to become the fourth world producer by 2020, with a production of 5 million cars from 13 different brands in more than 30 manufacturing plants.
The automotive industry employed 840,00 workers directly at the end of 2017, which is equivalent to 23% of the personnel employed in the country’s manufacturing sector, according to the Monthly Survey of the Manufacturing Industry (EMIM) of Inegi.