Mexico’s Automotive Industry Expands to New States

Mexico’s automotive sector is witnessing a significant shift as four states—Hidalgo, Michoacán, Sonora, and Tamaulipas—increase their involvement. These regions are focusing on developing their supply chains to strengthen their position in the industry.

Daniel Hernández Camacho, president of the National Network of Automotive Industry Clusters (Redcam), revealed that Mexico had about 11 automotive-focused clusters until recently.

Sonora has just signed an agreement to create its own cluster, aiming to boost its supply chain by integrating local companies. Tamaulipas is making progress in establishing a cluster, particularly in the Matamoros and Reynosa regions.

Hidalgo, in central Mexico, began clustering strategies a few years ago in the Ciudad Sahagún area. The industry’s growth in these states is linked to the presence of key companies.

Hernández Camacho noted that supply chain development had been overlooked in the past, but now governments are turning to cluster ecosystems to consolidate this aspect.

Redcam has signed a collaboration agreement with the Mexican Association of Economic Development Secretaries (Amsde). This partnership aims to support state secretariats in promoting cluster policies in areas with industry presence but lacking support systems.

The Rise of Automotive Clusters in Mexico

The relocation of suppliers and investments is influencing the development of automotive zones. Companies see opportunities to capitalize on these production trends. The cluster model can make investment attraction more strategic for these regions.

The National Auto Parts Industry (INA) reports that from January to July, the sector’s production in Mexico reached $73,303 million. The northern region contributed 43.3%, the Bajío region 36%, the center 15.6%, and the rest of the country 5.1%.

The main producing states are Coahuila, Guanajuato, Nuevo León, Chihuahua, and Querétaro, accounting for 58.1% of the total value of the auto parts industry.

However, in terms of annual growth, Yucatán led with 37.3%, followed by Zacatecas, Guanajuato, San Luis Potosí, and Nuevo León.

This expansion reflects a growing trend of decentralization in Mexico’s automotive industry, highlighting the potential for economic growth and job creation in new regions across the country.