Automotive OEMs in Mexico manufactured a record number of units in 2014.
2014 Mexican automotive production grew by nearly ten percent when compared to 2013, according to figures provided by the Mexican Automotive Industry Association. Over the course of the twelve month period OEMs located in the country produced a total of 3,219,786 units. Of this number a record number of passenger vehicles were shipped to overseas consumers. 2014 Mexican automotive production accounted for the shipment of a total of 2,642,887 passenger vehicles to foreign markets.
With the aforementioned production numbers, Mexico has surpassed its principal Latin American rival, Brasil, to become the seventh most prodigious manufacturer of automobiles in the world. Analysts predict that Mexican automotive production will break its own record in 2015, as well. Industry analysts predict that Mexican automotive plants will churn out about 3,500,00 vehicles during the present year.
Eduardo Solis, the president of the Mexican Automotive Industry Association, also known by its Spanish acronym AMIA, recently pointed out that 2014 Mexican automotive production increases enabled the country’s manufacturers to move past Japanese automotive OEMs to become the second largest supplier of imported passenger vehicles to the US market. While units of passenger vehicles shipped from Mexico to the United States during 2014 totaled 1,875,575, the number of autos making their way to US consumers from Japan reached 1,627,296. According to Solis, “Mexico is a leader in the automotive sector, a sure bet and an opportunity for suppliers to the passenger vehicle industry to continue their expansion.”
A major reason for record numbers in 2014 Mexican automotive production is related to economic conditions and demand for new passenger vehicles in the United States. A full seventy-one percent of product that is made in Mexico is subsequently shipped to its neighbors to the north. Year over year increased demand for Mexican output registered 5.8% during the last full calendar year. 2014 Mexican automoive production received a boost in capacity as a result of the significant new manufacturing investments made by OEMs such as Nissan, Honda and Mazda in 2013 having come on-line.
Another factor that resulted in a banner year for 2014 Mexican automotive production was that Mexico-based OEM assemblers had a historic month in December. In comparison to the last month of the year in 2013, Mexican factories output grew at an impressive twenty-seven percent to reach a total of 208,498 units. As a result of an increase in overall production, export totals reached a record number, as well. December’s sales to foreign customers reached 195,091. This number represents an increase of twenty-one percent over the same period in 2013.
2014 Mexican automotive production was one of the principle drivers of the country’s growth in manufacturing during the year. It is expected to be one of the leading engines of expansion going forward as well. With the increased role that auto manufacturers will play in Mexico in the coming years, will come increased opportunity for automotive suppliers in Mexico to either initiate new, or grow existing operations.