The News
Tuesday 21 of May 2024

Automotive Products Make Up One in Four Dollars of Mexican Exports  

A car production factory,photo: Wikipedia
A car production factory,photo: Wikipedia
The researcher at UAEM pointed out that Mexico is the seventh-largest producer of cars in the world and the first in Latin America

Yolanda Carbajal, professor at the Center of Research in Economic Sciences at the Autonomous University of the State of Mexico (UAEM), says that the automotive sector — one of those most important areas of economic activity in the country — is under great threat from the Donald Trump, president of the United States.

She pointed out that Mexico is the seventh largest producer of cars in the world and the first in Latin America. It is the fifth largest producer of car parts and the fourth largest exporter of light vehicles in the world. The automotive industry contributed 3.2 percent to Mexico’s GDP and 18.3 percent to the country’s manufacturing sector, which in 2016 employed more than 765,000 people.

Carbajal said that 10 different Mexican states are involved with vehicle assembly. There are three factories from the United States, four from Japan and one German company.

Mexico’s automotive industry amounted to $85 billion in 2015, with almost all major car manufacturers producing car parts there.

She added that the automotive sector is also one of the largest recipients of foreign direct investment (FDI) in the country. Between 1999 and the first half of 2016 it received about $45.7 billion, representing 10.2 percent of the total FDI received in Mexico.

The academic said the fact that the automotive sector has had a very important growth in North America should be noted. The vehicle production of the three countries involved in the North American Free Trade Agreement (NAFTA) accounts for 19.8 percent of total world production.

Within NAFTA, Mexico has seen the greatest growth of the automotive industry.