This article is written by Austin Garcia
Mexico, “A Key Player”
Mexico has become a very important player in global car making. Its location, skilled workers, and strong factories help. The auto sector makes up 17.6% of Mexico’s manufacturing. This shows how vital it is to their economy. Most vehicles made in Mexico are exported. A high 88% go out of the country. Of those, 76% go to the United States. This confirms Mexico’s key role in the global car supply chain.
Mexico ranks seventh worldwide in vehicle production. It has held this spot for three years in a row. In 2023, Mexico built 4,002,047 vehicles. This data comes from OICA. Mexico is close to Germany (sixth, 4,109,371 vehicles). Global vehicle production grew a lot in 2023. It passed 93 million units. This shows a strong recovery after the pandemic.
Speed Zone to Success
Many top automakers have factories in Mexico. These include Audi, BMW, and Ford. General Motors, Honda, and Hyundai are there. Kia, Mazda, Mercedes Benz, Nissan, Stellantis, and Toyota are too. These companies use Mexico’s advantages. Its location is good. It has free trade deals and skilled workers. It is the world’s fifth-largest maker of these vehicles.
The auto sector is one of Mexico’s biggest industries. It employs over one million people nationwide. This sector offers good jobs. It adds much to Mexico’s economy. The Mexican Automotive Industry Association (AMIA) predicts growth. They think Mexico will be the fifth-largest auto producer globally by 2025. This shows the industry’s potential for growth.
Here at TradeFlex
The United States-Mexico-Canada Agreement (USMCA) started on July 1, 2022. It changed rules for auto parts origin. These changes affect how automakers in Mexico source parts. Some think the U.S. might be at a disadvantage. We can find opportunities in Mexican manufacturing. TradeFlex can help you handle effects from new tariffs.
At TradeFlex, we help businesses succeed.
We help you with:
- Business Planning: We analyze your business. We create custom strategies for you.
- Managing Production: We help with manufacturing plans. We improve how you source goods.
- Tariff Costs: We work to lower your import duties. We use smart strategies to save money.
- Following Rules: We manage customs compliance and offer advice on regulations. This helps you avoid fines.
- Duty Savings: We provide programs to reduce what you pay in duties.
- Supply Chain Design: We optimize your entire supply chain. We make it more efficient.
We have over 30 years of experience and help businesses “land softly in Mexico.” This means smooth and cost-effective operations. Our tariff engineering expertise is key. We meet challenges with smart solutions.
Come work with us today! Visit https://trade-flex.com.
