subject: Mexico Car Market [print this page] Mexico ranks because the 10th largest automobile producer in the world, which accounts for 17.6% from the manufacturing industry and 3% of national GDP. Mexico's auto parts business is closely related towards the U.S. industry.
There are presently seven manufacturers in Mexico producing 40 brands in 20 production plants.
Mexico produces around 2 million automobiles on a yearly basis. Out of this number 79% of production is devoted to exports and also the remaining 21% for the local marketplace. The spare parts marketplace is expected to increase following Mexico imposed new duties on the importation of used automobiles in 2009. As a result, repairing and upkeep of utilized vehicles will need varied parts.
In addition, other opportunities exist for U.S. exporters of spare components and new technologies to decrease costs. Parts, equipment and very first and second-tier components from the U.S. might encounter an improve in exports because of forecasted Mexican manufacturing of new models that have shifted from U.S. assembly plants. According to NAFTA, used automobiles older than 10 many years had been to be imported into Mexico from the United States duty-free beginning in 2009. However, new decrees have been issued by Mexico, decreasing the importation of used vehicles into Mexico via regulations and needs.
These measures were adopted in response to concerns about older utilized vehicles raised by nearby governments and private vehicle associations in Mexico, such as greater pollution generation, fuel efficiency limitations, greater upkeep costs, low mechanic conditions, reduction of new vehicle sales, as well because the inherent difficulty in tracking and identifying older utilized vehicles involved in criminal actions or violations. The combination of these factors and other people, forced the Mexican government to put in place some needs to control the importation of older used automobiles.
Automotive accessories are regarded all of those parts that are sold to improve the appearance of the automobile, to increase performance, to replace original components with up-graded luxury items this kind of as seat covers, door and window handles, chrome plated exhaust pipes, larger sized wheels and tires, etc. for cars, pick-ups, and trucks. Even though there's a big amount of local manufacturing of these products, the majority of them are imported. The significance of this sub-sector is evidenced by the tremendous size of the annual accessories trade display, SEMA, which is held in Las Vegas, Nevada every year.
SEMA exhibitors traditionally display thousands of new products in each and every show, and for the last a number of years, the greater part of exhibitors has been from Asian countries, particularly China, Taiwan, and Japan. Having a population of about 105 million inhabitants, Mexico may be the 2nd largest marketplace in Latin America, following Brazil, and 1 from the biggest markets worldwide. Having a GDP per capita of $8.343 USD and average monthly wages of $581 USD, Mexico has a great position among emerging economies. The automotive business is considered a strategic economic pillar in Mexico. The potential of the Mexican automotive business is such that it represents the 2nd most essential sector of the country, for this reason there is great potential to supply the automotive production sector. The production industry represents 19% from the GDP.
