Mexico has 26 automobile plants, including those of General Motors, Ford, Nissan, Stellantis, Volkswagen and Hyundai.
The Mexican Automotive Industry Association (AMIA) estimates that Mexico will go from being the seventh largest automaker in the world in 2022 to become the fifth largest in 2025.
The Mexican automotive industry, with more than 1 million jobs and 300 research and development centers, produces more than 50 brands and more than 500 models.
About 91% of Mexico’s vehicle production is for export, according to the International Organization of Motor Vehicle Manufacturers.
In addition, in recent announcements, electric vehicle manufacturers Tesla and BMW (with an initial investment of approximately €800 million) announced significant investments to build new factories in Mexico.
Other factories in Mexico belong to Toyota, BMW, Mazda, JAC and Mercedes Benz.
Automobile plants
The USMCA introduces stricter rules of origin, with higher thresholds for conferring origin, especially in sectors such as automobiles, steel, and aluminum.
For instance, the Regional Content Value for many automotive products increased from 62.5% under NAFTA to 75% under the USMCA.
Additionally, to qualify for origin, automotive producers must source aluminum and steel from within the region, making up 70% of the value of their purchases. Origin is only granted if the metal is smelted and cast in the territory of one of the Parties.
The USMCA also establishes a labor value content criterion for conferring origin in the automotive sector.
By July 2023, the domestic production sector must adhere to the USMCA rules of origin. Companies that requested an Alternative Transition Regime will follow the agreements established in this regime, based on the provisions approved by the three countries.
In the globalized economy, Mexico plays a key role in mineral production, notably in the extraction of metallic and non-metallic minerals.
Being a major mineral producer positions Mexico as a vital supplier of inputs for various industries, including automotive, electrical, electronics, electric power generation and storage, and electromobility.