Mexico received over 4.26 billion dollars in investments from the automotive industry in 2021

Mexico City, January 26, 2022 (with information from Directorio Automotriz).- The report on Automotive Investment in Mexico 4Q 2021 and Summary of Automotive Investments during 2021 in Mexico, from the business intelligence platform Directorio Automotriz, showed that Mexico captured 487 million dollars in investment from the automotive sector during the fourth quarter of 2021.

The report details that during the 4Q of 2021, 21 investment projects were received in the sector, from 10 different countries. Of these, 8 correspond to new investments in industrial plants and 13 to expansions of existing plants.

It is also indicated that 19 of the 21 investments registered in the last quarter of 2021 are from auto parts companies (Tier 1 and 2), while another one corresponds to a raw materials company and finally one more to the construction of a new industrial park.

According to information from Directorio Automotriz (ACCESS HERE), these investments attracted 487.67 million dollars that generated at least 10,801 direct jobs and the construction of 667 thousand square meters of industrial land. The largest investment in the fourth quarter of 2021 was from the Japanese company Zoltek (Toray) in Jalisco, dedicated to the expansion of its carbon fiber production plant for large trailers with a total investment of 130 million dollars.

The Summary of Accumulated Automotive Investments in 2021 indicates that a total of 114 new investments were received from 15 countries in the sector during the past year. Of these, 56 were new plants, 53 were expansions, 3 acquisitions and 2 retoolings. In total, more than 4,265.07 million dollars were accumulated between January and December, 15.35% more than in 2020, indicating a recovery in the sector, although less than initially expected.

The greatest recovery occurred in regards to direct jobs generated by these investments, with a total of 38,543 job opportunities, which represent a growth of 71.84% over those in 2020. In addition, the construction of more than 11.56 million square meters of projects (497.07% more than in 2020) indicates that the arrival of a large number of new investments and expansions is expected in the coming years.

THE BAJÍO CONTINUES TO DOMINATE THE NATIONAL AUTOMOTIVE INDUSTRY

With 62 projects and 1,093.17 million dollars in investments, the Bajío region (Aguascalientes, Guanajuato, Queretaro and San Luis Potosi) continues to be the automotive cluster with the greatest movement and dynamism in the country. In 2021 alone, the Bajío recovered 17,643 jobs and accumulated more than 2.8 million square meters of construction of automotive plants and new industrial park projects for the sector.

Guanajuato maintained its leading position in attracting investment in the sector during 2021 with a total of 497.17 million dollars, although it was 10.72% less than in 2020 when a total of 40 projects were registered. The state of Guanajuato was also the one to create the largest number of new direct jobs: 7,979, and reaching more than 2.49 million meters of construction.

For its part, Aguascalientes registered the second highest growth nationwide, with an impressive 207.67% more compared to 2020 (occupying the fifth national position in total investments). The state accumulated 235.8 million dollars from 10 automotive projects that generated 5,655 new jobs.

In third place nationally is San Luis Potosí, which accumulated 59.65% more automotive investments than during 2020. With a total of 257.7 million dollars in 14 projects during 2021, San Luis Potosi forged a position as one of the main automotive clusters in Mexico.

Querétaro wasn’t far behind, although it was the most affected in the Bajío region, since it registered a 61.34% drop in accumulated investments against 2020, but it was placed in fourth national position with a total of 12 automotive investment projects and a lot of room to grow in 2022.

THE MEXICAN NORTH CONTINUES TO SHOW STRENGHT

The northern part of Mexico (Chihuahua, Coahuila, Durango, Nuevo León and Zacatecas) was the second region with the highest number of projects and the first in accumulated investment amount, with a total of 2,456.6 million dollars (+65.59% VS 2020), concentrated mainly in the state of Coahuila, which received the largest investment in all of 2021 with the announcement by General Motors to transform its Ramos Arizpe complex into a production site for electric cars and their components, which represents an investment of $1 billion. Coahuila was also the second largest attractor of projects, with 20 new investments that will generate at least 6,425 new jobs and has an area under construction of more than 8.1 million square meters, the largest in the country.

It should be noted that Nuevo León consolidated its recovery in the automotive sector in 2021 with a growth of 243.96% in accumulated investments (the highest in the country), compared to 2020. The crown jewel state for everything industrial accumulated 5 projects that generated at least 370 millions and over 4,750 jobs.

TO ACCESS THE FULL REPORT, CLICK HERE: https://lnkd.in/ezqwVR3k

Information owned by Directorio Automotriz (2022).

Written by: Adrian Martinez.