Many large automakers have already established residency in Mexico for automotive manufacturing, however, some are focusing on the future and expansion within the country.
Toyota Motor Corporation wants to boost capacity and begin to restructure its expansion within automotive manufacturing throughout Mexico. The automaker already manufactures its two well-known trucks, the Toyota Tundra and Tacoma, within Mexico and is considering moving other models, or possibly creating an entirely new model in the near future.
The automotive industry is one of the biggest sectors for manufacturing in Mexico. The industry grew 13.4% in July of 2013 compared to the previous year. In total, the automotive industry in Mexico has increased over 9% for the 2013 year.
The Mexico automotive industry houses many large players ranging from Nissan and Mazda, while also reaching the luxury market like Lexus, Audi and Mercedes. Low labor costs, a skilled labor force and a reliable transportation system to move goods from Mexico into the United States are just a few of the many advantages of why these automakers are choosing Mexico over other countries. Many have even coined the country as “The new China,” with manufacturing numbers to back it up.
Toyota’s future in Mexico will start with a joint venture to produce approximately 60,000 cars in Mazda’s new facility in Guanajuato, Mexico. This car may cater to the Mexican market but it is too early to tell. By increasing production with a local market, Toyota may quickly become one of Mexico’s largest producers of automobiles. It is not a surprise Toyota has begun making the necessary moves to capitalize on the automotive industry in Mexico. Without a doubt, many other automotive companies will soon be looking to expand as well.