Automotive Manufacturing Industry in Mexico

With demands shifting, automotive manufacturing requires access to affordable resources and low-cost, high-skill human capital. The robust automotive industry in Mexico provides OEMs and Tier 1, 2, and 3 suppliers, an optimal environment for manufacturing success.

Mexico’s automotive clusters provide an unmatched opportunity for global automotive producers

With an annual output of approximately 4 million vehicles, Mexico is the 2nd largest passenger vehicle-producing nation in the western hemisphere. Automotive clusters in the country’s central and US border regions ensure that automotive producers in Mexico receive the full resources and connections needed to compete globally.

With shorter lead times, greater value chains, stronger infrastructure, and nearly 100,000 skilled automotive workers, Mexico offers an unparalleled opportunity for auto assembly plants and parts suppliers.

Mexican automotive industry by the numbers

112B

Total annual value of manufactured vehicles and related parts

#1

Manufacturing industry contributing to Mexico’s GDP

30

Automotive OEMs producing in Mexico

82k

Technically trained industry workers

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Mexico’s advantages for the automotive industry

  • Duty-Free to the World

    While the US has about a dozen free trade agreements in place, Mexico boasts over 40. In addition to being a USMCA member and servicing the burgeoning US market, Mexico exports duty-free to many countries around the globe.

  • Robust Infrastructure Ready
 & Waiting

    The automotive industry in Mexico enjoys modern industrial parks, a state-of-the-art electrical grid, and numerous international seaports and airports. Mexico also provides highly secure toll roads & expressways and a robust network of suppliers & vendors.

  • Highly Skilled Yet Affordable Workforce

    The Mexico auto industry is the country’s top manufacturing powerhouse. Recent educational-industry partnerships have ensured a growing supply of low-cost labor trained in the industry’s sophisticated processes and systems.

  • An Established & Growing Hub

    Mexico’s IMMEX program has resulted in ease and low costs. Automotive manufacturers like Audi, GM, Nissan, BMW, Toyota, and Daimler, have been able to create an efficient supply chain for automotive and auto parts manufacturing.

  • Parts & Supplies, No Problem

    Major Tier 1 suppliers like Delphi, Johnson Controls, Lear, and also thousands of small-medium companies service this industry with auto parts and more. Automotive manufacturing in Mexico is rich in supply-chain options.

  • Clusters, Clusters

    Along the border and throughout central Mexico, there are over 30 auto-industry clusters. The resulting economies of scale, shared resources, and common R&D generate incredible synergies and cost savings. Choosing a shelter option enables manufacturers to plug directly into this dynamo.

50%

Average client savings

30-90

Days required 
to start

$2.5

Average manufacturing wage in Mexico

Learn how to transition your automotive operation to Mexico with minimum risk

FIND OUT HOW MUCH YOU CAN SAVE

We’ve been there We’ve done that!

Sammy Garcia

With Tecma you can manage a fully functioning automotive plant in Mexico without worrying about peripheral functions like recruitment, site selection, regulatory issues, or supply chain matters.

Tecma Shelter Services allow you to maintain your focus on manufacturing while Tecma takes care of Mexico. Over time, we have developed a proven system by which your company can avoid the costs of maintaining an internal recruiting team, extend its human resources networking reach, achieve and maintain compliance with all aspects of Mexican Law.

Plug into Mexico’s auto manufacturing industry with a Tecma Shelter operation

  1. All-in-One Solutions

    We offer complete service packages tailored to your unique needs. From site selection to workforce recruitment to supply-chain optimization, our unique shelter solutions give you the options you need to navigate this challenging industry and excel in Mexico.

  2. Compliance Is Effortless

    Compliance issues can sidetrack you from your manufacturing mission. But when it comes to regulatory and tax issues, Tecma has you covered, every step of the way.

  3. Lower Production Costs

    Shelter manufacturing in Mexico is how our top-tier clients stay ahead of the competition by lowering costs – 50% or more in many cases. We’ve spent years identifying the savings for you.

  4. IMMEX to the Max

    You don’t have to choose between contract manufacturing and a wholly-owned subsidiary. We leverage Mexico’s Maquiladora program (IMMEX) so you can quickly transition to manufacturing in Mexico without having to open a Mexican company. It’s the best of both worlds.

Just what is a Mexican Shelter for Manufacturers?

E.g.

Perhaps you have a robust manufacturing operation in the US, but want to move manufacturing to Mexico to reduce costs. Opening a factory in a foreign country is layered in bureaucratic complexities, liabilities, and logistics hassle.

A shelter is a legal structure already established in Mexico under which you can operate as a division. This allows you to focus only on core functions while the shelter company handles everything from tax compliance to import/export to accounting and HR.

Start Saving & Grow

Interested in manufacturing in Mexico?

We have facilities in the highly developed automotive support manufacturing centers of Juarez, Tijuana, Torreon, Leon, and the Guanajuato region. These centers provide the OEMs and Tier 1, 2, and 3 auto support manufacturers access to tightly networked industry clusters, and strong infrastructure in Mexico, growing their competitive advantage.

Julian Lopez Director of Program Management

Talk to Julian Today

Julian Lopez Director of Program Management

Talk to Julian Today