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Transportation equipment dominates investments to Mexico

The transportation equipment sector dominated FDI directed to Mexico in 2023.

Overall, 50% of FDI registered in Mexico was concentrated in the manufacturing sector.

Mexico attracted US$36.058 billion of FDI in 2023.

The transportation equipment sector encompasses a wide range of industries related to the manufacture, design, maintenance and marketing of vehicles and transportation components.

This sector is crucial for mobility and connectivity in various areas, from people transportation to freight transportation.

Other industries that stood out in attracting FDI in the manufacturing industry were: beverage and tobacco industries, metals, computer equipment, chemical industry and electrical appliances.

Transportation equipment

In particular, Mexico has increased its competitiveness in the automotive sector, with a growing share of total U.S. imports and, at the same time, a diversification of exports to other markets around the world.

Mexico is the largest export market for U.S. auto parts and the fourth largest auto parts producer worldwide, generating $107 billion in annual revenues.

The size of Mexico’s passenger vehicle market and the shared U.S.-Mexico border generate strong demand for U.S. automotive original equipment and parts.

The U.S. Department of Commerce recommends that the most effective way for U.S. auto parts and equipment suppliers to enter the Mexican market is through local representation or regional distribution.

Assembly plants prefer suppliers located nearby to minimize inventory volumes and facilitate just-in-time or just-in-sequence deliveries.

It is easier to serve OEMs in Mexico if the U.S. exporter already supplies them in the U.S. and has a supplier number.

Automotive parts related to components for Tier 1 or Tier 2 suppliers represent the most exported items from the United States.

However, opportunities exist for the production of engines, plastic and metal hybrid components, address casting, stamped parts, connectors, machining of high precision parts with secondary operation, machinery and equipment, materials, pre-assembled components, hot and cold forging, aluminum die casting, molds, tooling, cutting tools, automation process equipment, raw materials, finished parts and accessories.


Redacción Opportimes

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