Volkswagen and Audi de Mexico manufactured 619,798 units in 2017
Currently the automotive sector contributes with more than 3 % of the Gross Domestic Product (GDP) and 18 % of the manufacturing GDP in Mexico, it has a commerce higher than the 52 billion dollars a year, the foreign direct investment is of more than 51 thousand 200 million dollars and generates 900 thousand direct jobs.
The country produces vehicles sold worldwide as well as auto-parts 100 % made in Mexico. In addition, more innovation and development centers are created everyday promoted by Automotive Clusters in each entity, what allows being at forefront in new technologies implemented in the units.
Mexico has become the seventh producer in the world and the fourth exporter of vehicles worldwide. It is the destination of 9 of the 11 assembly plants that are being settled in North America since 2011, therefore the light vehicles production could be increased mainly to reach about 5 million units in 2020.
ESTADO DE MEXICO
The most important industrial activity in the Estado de Mexico is the Automotive Industry, not only for their products but because it influences in other big industrial activities. The design, development, manufacturing, assembly, commercialization, service and automobiles repair.
This Industry in the Estado de Mexico generated the development of qualified workforce and the creation of important educational centers that together with other factors make the entity leader in this industry and referent in the country and in the world.
Today the Estado de Mexico has the third national place in the automotive and auto-parts industry, generating 10 % of the total value of the industry in the country, only after Coahuila and Puebla. These activities produce job sources for 132 thousand people in the entity.
The entity has on its territory nine vehicles assemblers: General Motors, Chrysler, Volvo, Daimler, Nissan, BMW, Ford, Peugeot and Autos Mastretta, being one of the States with more concentration of assemblers nationwide.
Only in the final manufacturing of vehicles, this industry locates in third place nationwide, being slightly surpassed by Puebla and Coahuila, and generates direct jobs for a little more than 45 thousand people.
In addition of the final vehicles assemblers, the Estado de Mexico is ideal territory for the settling of first level (Tier1) supply companies, second level (Tier 2) and third level (Tier 3.) Currently it has 243 supplying companies, which generate jobs for more than 83 thousand people.
The suppliers’ chain from the Estado de Mexico mainly refers to body and tows, parts and components, and rubber products manufacturers.
Estado de Mexico has the first national place in body and tows manufacture, followed by Nuevo Leon and Coahuila. In matter of Auto-parts it has the fourth place preceded by Chihuahua, Coahuila and Nuevo Leon. And finally, in the manufacture of rubber products is also located in first place in the country, followed by Morelos and Guanajuato.
The automotive industry in Puebla is one of the industrial sectors with greater economic development in the entity, an example of that is Volkswagen de Mexico, leading company in this sector, and the settlement of the manufacturer of luxury vehicles Audi. Such car assemblers produce one million units per year, from there can be seen the great opportunity of being present in Mexico.
In 2017 were generated about 45,786 jobs registered in the automotive sector, 49.5 % of growth in automobiles production and 619,798 cars manufactured with Volkswagen and Audi de Mexico.
In 2016 was opened the Audi plant in San Jose Chiapa, Puebla, what generated 5,200 direct jobs and the production of 150,550 units only in the first year of operations.
Currently the company with the four rings analyzes working programs to increase the production of their Q5 trucks, as well as new versions of the same what will allow generating more jobs and an economic dynamism.
Volkswagen de Mexico continues to be due to its production volume, the biggest automotive complex in North America, in addition to be the second largest of the company in the world, this last one according to the directives of the German company.
Volkswagen, created on January 15 1964, has a workforce of 17 thousand collaborators on their plant Puebla, from which 11 thousand are production technicians.
Regarding cars exports from the Puebla entity, grew to November 14.7 % regarding the previous year, locating above the national average, whose advance was of 11.9 percent.
The amount of automobiles sent abroad went from 29,798 vehicles to 34,181 units, according to data broadcasted by the Ministry of Competitiveness, Labor and Economic Development (SECOTRADE, by its Spanish initials.)
Automotive exports progress due to a better demand of units in foreign markets, mainly to North America, main destination of vehicles manufactured in plants settled in the Puebla entity.
Only in November, exports represented 98.4 % of the total production, with this the State contributed to the 2 million 849 thousand 881 vehicles Mexico sent abroad.
Thus Puebla has the fourth place as producer and third as exporter in the country.
The Ministry of Economic Development (SEDECO, by its Spanish initials) reported that a total of 45 industries from the automotive sector are settled in the State, which represent 50 % of the new investments arriving to the entity and that contribute to Tlaxcala being a national referent in this sector.
Jorge Luis Vazquez Rodriguez, head of SEDECO, referred that these amounts result from the strategy of accompaniment and customized attention that the State government offers to investors, which translates in the entity housing capital from 13 countries.
From the total of companies from the automotive sector install in Tlaxcala, 26 are direct suppliers of the main assemblers worldwide, original from countries as Germany, Austria, Slovenia, Spain, United States, India, Italy, Japan, Luxembourg, Switzerland, Poland, Portugal and China.
The head of SEDECO explained that the consolidation of Tlaxcala in the automotive sector contributes to Mexico’s positioning as the seventh country with more vehicles production, which registered an increase of 12.6% in 2017 and it was also reflected in the increase of exports in 14 percent.
This trend allows Tlaxcala be confident in the automotive supply sector and take advantage of the competitive advantages that it has, such as its geographic location and qualified workforce.
The aim is to achieve a larger number of companies chose Tlaxcala as their investment destination, what translates in the strengthening of the local economy and generation of formal jobs in benefit of the Tlaxcala families.
The Ministry of Economic Development strengthens the approach with the companies of the automotive sector in the entity, aiming to consolidate the competitive profile Tlaxcala has in the area.
As part of these actions, Jorge Luis Vazquez, head of SEDECO, held a tour by 2 companies installed at the Vesta Park Tlaxcala I Industrial Park from Huamantla to endorse the support of the State Government to investors generating jobs in the entity.
During the tour by the plants he knew the business development and services integration of Chinese capital “Sonavox Mexico Electronics,” specialized in the design and manufacture of horns for the automotive industry, and the company “Grupo Antolin Tlaxcala,” one of the main manufacturers of automobiles interior globally.
Jorge Luis Vazquez explained that the company’s effort allows that the workforce from Tlaxcala is present in one of every four vehicles produced worldwide.