Japanese automakers are in serious competition to gain control of the market in Mexico,which has historically been dominated by the so-called “Big Three” from Detroit in the U.S. At the recent International Contest of Elegance in Huixquilucan,which is part of greater Mexico City,Mazda Mexico President Leopoldo Orellana told reporters that more investments in Mexico real estate are coming over the coming months and years.
“We already are the fifth vehicle exporter and eighth producer in the world,but with new investments announced,Mexico tends to become a universal leader in this industry,” he shared.
Mazda has already invested $500 million to build its first plant in Mexico,along with $2 billion by Nissan and $800 million by Honda,followed by Ford’s recent announcement that it will invest $1.3 billion,and Audi’s intentions to build a new plant here this year.
“I do not think these are all the investments that will arrive in Mexico this year; I think there will be more,because Mexico nowadays is very attractive and there is nothing better for Mexico’s economy than becoming this – a world leader in automotive production,” Orellana continued.
Although Mexico’s automotive industry is still largely controlled by the Big Three,Orellana believes that eastern manufacturers may realize the highest percentage of market penetration by the end of 2012. At the end of the first quarter Mazda held fast to its 3 percent share of the Mexican market,but the automaker is forecasted to close the year with a growth of at least 10 percent.
“I think that competition is becoming more global; in Mexico we have investments from Asian,American and European brands,but above all the Japanese are directing a lot of capital into our country,” shared Orellana. “I am convinced that ultimately it is the tendency of the Mexican market to open up even more.”