Mexico’s automotive industry achieved a significant milestone in February 2024, reaching a record high for light vehicle exports in that month. With 282,608 units shipped internationally, this represents a 22.6% increase compared to February 2023. This growth marks an acceleration from the 6.8% observed in January 2024, highlighting a positive trend for the sector.
Domestic production also saw a healthy uptick, rising 7.8% year-over-year to reach 318,735 units in February 2024. This growth coincides with the nascent electric vehicle (EV) production in Mexico. Ford & General Motors are leading the charge in this segment, having assembled four EV models: the Mustang Mach-E, Chevrolet Blazer EV, Equinox EV, and Honda Prolongue. These models collectively contributed over 12,400 units to February’s production figures.
Mexico’s strong performance solidifies its position as a key player in the global automotive landscape. Currently, the country ranks as the fourth-largest exporter and seventh-largest producer of light vehicles. This dominance is particularly evident in the United States market, where a remarkable 18% of all cars sold originate from Mexico, making it the leading supplier south of the border. Industry experts project this dynamism to continue in 2024, with the automotive sector anticipated to contribute 32% to Mexico’s total exports.
However, the industry’s growth trajectory is not without its challenges. While some manufacturers like Volkswagen, Ford, JAC, and Nissan experienced significant production increases, others faced temporary setbacks. Audi’s production dipped by 57% due to a labor strike, while Toyota grappled with a 39.5% decrease related to a model change for the Tacoma truck. Stellantis also saw an 18.5% decline in production.
Looking ahead, for Mexico to solidify its position as a leader in new technology vehicles, fostering a robust domestic market for EVs and other emerging technologies will be crucial. This will necessitate the development of the necessary infrastructure to support the adoption and use of these advancements.