Nearshoring in the automotive industry is driving notable foreign investment in Mexico, promoting competitiveness and integration of value chains , as highlighted by BSI Group México through a press release.
In this sense, Felipe García, Business Development Manager for the automotive sector at BSI Group México, pointed out that nearshoring in the automotive industry can offer a series of advantages, such as reduced logistics costs and greater response capacity. However, political decisions and regulatory changes may represent risks or opportunities for the industry.
He also explained that complying with international standards and certifications is key to accessing the benefits of the Treaty between Mexico, the United States and Canada (TMEC), which contributes to reducing logistics costs and strengthening global competitiveness.
Mexico’s free trade agreements make it an attractive area for the operations of major automakers seeking the benefits of production closer to end markets.
Felipe García highlighted that “complying with these standards and certifications not only facilitates nearshoring under the USMCA, but also strengthens the competitiveness of companies in the global market, ensuring that they can adapt to the regulatory and political demands of different regions. In addition, they internally strengthen the correct management of the company itself.”
This trend strengthens foreign investment in Mexico and opens opportunities for small and medium-sized local companies by integrating into the value chains of various sectors. However, these companies face challenges in services, quality, planning and distribution.
The challenge for many of them, however, is making sound public policy decisions and living up to the quality of their services and products, planning, distribution, among others,” García added.
In 2024, it is estimated that investment in nearshoring will be around $2.3 billion, with expectations of greater growth in the next five years.
The statement also highlighted that in 2023, auto parts production grew by 16.5% , reaching a record of 121,158 million dollars, demonstrating the positive impact of this strategy. In addition, Mexico’s geographic location offers significant advantages, such as reduced logistics costs and greater response capacity for organizations.
The main recipients of foreign direct investment (FDI) for auto parts in 2023 were Chihuahua (23.2%), Coahuila (11.4%), State of Mexico (11.1%) and Guanajuato (9.6%), receiving more than 55% of all FDI of the sector in the country.
Furthermore, sustainable practices in the automotive supply chain are being addressed through cleaner technologies, logistics optimization, transparency and traceability, collaboration with sustainable suppliers, investment in renewable energy and a focus on the circular economy.
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