This is a Ford that entered the Mexican market in 1925.
This is a Toyota that entered the Mexican market in 1960.
This is a JAC Motors (Chinese Brand) that entered in 2017.
Mexico is now the 7th largest car producer and the 5th largest auto parts manufacturer globally. In 2023, Mexico imported $10.74 billion worth of auto parts (HS code: 8708), with China, Germany, and Japan ranking as its top 3 trade partner.
Mexico's Total Import for Automotive Cars (USD)
More than 20 years later, Japanese and German automakers joined the scene:
In 1961, Nissan began producing Datsun vehicles at its new plant in Mexico, marking Nissan’s first manufacturing base outside of Japan.
In 1964, Volkswagen established its Mexican headquarters in Puebla, and three years later, production of its iconic Beetle began.
In 1962, the Mexican government introduced a decree requiring that 60% of auto parts used in Mexican-made vehicles be domestically produced. Additionally, foreign ownership in auto parts joint ventures was capped at 40%.
As a result, many automakers, including Mercedes-Benz, Fiat, Citroën, Peugeot, and Volvo, left Mexico due to their inability to comply with the law.
1994: A turning point for Mexico
With the passage of NAFTA (North American Free Trade Agreement), many global automakers established manufacturing bases in Mexico.
In March 2023, Tesla officially announced the construction of a Gigafactory in Mexico, which could become Tesla’s largest plant. The facility, which will span over 4,200 acres, will not only produce vehicles, batteries, and semiconductors but also develop software.
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References:
- A Brief History of the Mexican Automotive Industry: https://insights.tetakawi.com/zh-hans/mexican-automotive-industry-history
- 2024 Automotive Export Report: Targeting Mexico, China’s Auto Parts Enter the Global Supply Chain: https://www.vzkoo.com/read/20240402015c694d9decd5a57e8fc602.html
- 2024 Automotive Industry Export Report: Mexico's Rising Exports, Continuing Influence in the North American Market: https://www.vzkoo.com/read/202402197050930f4ba68ef9ae18c8a4.html
- 36Kr Overseas: The “Chinese DNA” in Mexico’s Automotive Supply Chain: https://new.qq.com/rain/a/20230920A08BVX00
- Mexico's Automotive Manufacturing Attracting Many Enterprises: https://tetakawi.com/zh-hans/Topease: https://en.topease.net