• Mexico is the country that has signed the most free trade agreements worldwide, which facilitates exportations of vehicles and autoparts.
• It has economic stability and tax certainty for the next five years.
• Mexico’s geographic location favors exports of vehicles and autoparts to the main markets in the world.
• The Mexican automobile sector has the most modern and efficient installed capacity for vehicle production worldwide.
• Production capacity is highly technical and very flexible, which makes it possible to manufacture several types of models.
• The cost of Mexican labor is very competitive and it is rated as one of the best worldwide.
• New automobile clusters have been created and consolidated in central Mexico.
• Mexico’s car industry has vast experience in manufacturing vehicle components and autoparts.
• Logistics costs of exportations are significantly reduced given the proximity to the US.
• There are public and private, colleges and universities, which teach undergraduate and postgraduate courses aimed at the automobile industry.
• High dependence of the US market.
• Low internal market growth over the next few years.
• Lack of programs to encourage car sales in Mexico.
• Lack of programs and financing to develop supply sources.
• Lack of government interest in developing programs to promote purchases of hybrid or electric cars.
• A large portion of electricity is generated with fossil fuels.
Source: PWC ”Doing Business in Mexico”