Investment in Mexico’s auto industry has been growing at a staggering rate over the last few years,with several recent announcements bringing additional attention to this thriving sector. Nissan,Hyundai,Volkswagen and India’s Tata Motors have all recognized the opportunity that is presented by production and manufacturing facilities located in Mexico,according to reports by Reuters and Bloomberg Businessweek.
Nissan announced that it has seen production in its Mexico real estate units rise by up to 25 percent in 2012,producing 607,087 vehicles to become the largest car maker in the country,which is already Latin America’s second largest economy. According to a report by Reuters,Nissan launched a $2 billion investment plan this year in Mexico to build its third plant in the country and currently exports to 115 countries from its existing Mexico locations.
In addition,Hyundai has announced that it will invest $130 million in a new die cast plant in Mexico,with construction beginning later this year and the new facility scheduled to reach full production by January of 2014. The new plant will be opened in Tijuana and will produce 900,000 units annually,including engine blocks,cylinder heads and transmission cases.
A top Volkswagen executive was in the news recently touting Mexico’s competitive edge to Bloomberg Businessweek. Jonathan Browning,who is Volkswagen’s CEO,told the news agency that,while the U.S. is becoming less attractive for investment,Mexico is quickly becoming an increasingly attractive destination,citing Audi’s recent decision to open its first North American plant in Mexico.
Finally,Indian car and utility vehicle giant Tata Motors has announced plans to launch a variety of locally assembled cars in Mexico. The company will set up a new assembly plant in Mexico and will invest upwards of $100 million in the project. The new location will produce around 50,000 cars each year,including the Nano,the Indica,the Vista,the Manza and the Aria.