Auto Production in Mexico
May 23, 2013
Automobile manufacturing in Mexico has increased 16% for the month of April. The Mexican Automobile Industry Association (AMIA) said that they have reached a new April record with 238,766 vehicles. Along with the production increase, exports rose 2.8% and exports to the United States rose an additional 3.8% compared to the same period last year.
Another growth area was auto sales within the home. In April there were 83, 527 units, rising 20% in comparison to last year. There was a slight drop in March, which is due to Holy Week according to Eduardo Solis (AMIA President), however the remaining four months of 2013 had positive numbers with an increase of 5%.
Many automakers are beginning to expand into Mexico, with companies like Audi, who is planning on manufacturing 4 SUVs by 2020, and Honda who will invest $470 million into manufacturing in Mexico. Not only are these two well-known names claiming residency in Mexico, Chrysler has also seen the benefits of manufacturing in Mexico and will soon begin manufacturing the Fiat at its plant in Saltillo, Mexico.
Mexico continues to set auto production records, especially with the growth and expansion. “With numerous free trade agreements, a cheap, well-educated labor force, and proximity to the lucrative U.S. auto market, combined with growing demand in South America, automakers have been lining up for two years to set up shop in a country that could eventually overtake Brazil, Latin America’s biggest economy” says Reuters. Last year Mexico was an attractive location for automakers bringing in $3.7 billion in investments, and seems it will continue to stay on that path.