Doing Business In Mexico

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Automotive

Success Story

GKN Driveline has grown continuously since it started production of CVJ Systems in Mexico in 1979.

A state-of-the-art technology center opened in 1997. In addition a precision forge was established in 2000, producing a wide variety of extrusions. To support the growing market for CVJ Systems in Mexico and the USA an assembly facility opened in 2006 at Villagran.

UKTI Mexico has assisted GKN Driveline over the years with the development of various high-level contacts inside the public and private spheres. During the Deputy Prime Minister's visit to Mexico in 2011, GKN was invited to be part of the accompanying UK business delegation, providing an opportunity to share views and expertise with senior high level contacts inside the country.

 

Key Fact

Mexico is the ninth largest automotive 
manufacturer and the sixth-largest auto
exporter in the world. It is the most
important manufacturing platform
for the Americas.

Mexico is the ninth largest automotive producer in the world, currently producing just over two million vehicles annually. Mexico has also become the auto parts hub for North America. The Automotive sector in Mexico has attracted some of the largest Original Equipment Manufacturers (OEMs) mainly from the USA and Japan and provides excellent opportunities for supply chains from tier one to tier four suppliers (domestic and foreign). Mexico is also the home to 13 heavy cargo vehicle OEMs. In the past decade, Asian and European auto-parts suppliers have invested heavily in the USA and now analysts predict a wave of new investment in Mexico. Major investments by the main automakers and new free-trade activity are triggering further expansion as well as a move to more advanced and lighter weight vehicles and those with fewer emissions. Automobile suppliers now see Mexico as a viable production centre for all of North America.

UKTI's office in Monterrey has good relations with the main automotive clusters including government offices such as ProMexico, the Mexican organisation responsible for foreign trade and direct foreign investment and the main automotive trade associations.


Business Opportunities

  • Demand for raw materials used in the manufacture of spare parts and components.

  • Components (engineered parts for diagnostic and assembly equipment): Braking systems, electrical components, transmission and engine components, moulded plastic section, stamped steel parts steering assemblies, interior trims and light weight alternative metals.

  • Opportunities for tier one & two suppliers: OEM parts and components, hybrid vehicle components, materials, stampings, electronic components, equipment and specialised tooling.

  • High tech components and the mainstream application of motor sport technology and high-end manufacturing and design automotive engineering.

  • Supplies to the automotive after market with an increasing emphasis on high technology.

  • Since 2010, the NAFTA trade agreement has allowed the importation of used cars of newer models with no restrictions. This provides a wide range of opportunities for repair equipment and replacement parts.

     

Contact and Further Information

A report on the Mexican automotive sector as well as more information about the specific business opportunities can be obtained by contacting the UKTI team in Monterrey: 
British Consulate Monterrey Tel: +52 81 8356 5359 Email: carlos.botello@fco.gov.uk

 

Source - UKTI

 

Strategic Partners