A great number of Japanese auto parts suppliers following the steps of other car manufacturers have accelerated their investment in Mexico. Considering the free trade agreements Mexico have signed with over 40 countries or regions including the US and Canada as well as the comparatively more inexpen
A great number of Japanese auto parts suppliers following the steps of other car manufacturers have accelerated their investment in Mexico. Considering the free trade agreements Mexico have signed with over 40 countries or regions including the US and Canada as well as the comparatively more inexpensive labor force, car manufacturers like Nissan, Honda, Mazda, Ford, and VW all considered Mexico as their important production base for tapping into US and South American markets.
Several Japanese auto parts manufacturers including Yorozu have set up their plants in Mexico, which the production was started in 2014.
Some companies have established cooperation with Nissan. Nissan started to build a new plant in 2013 in Aguascalientes, Mexico, with the annual capacity of 600 thousand units of vehicles. If the production begins, its annual capacity of car manufacturing will reach 1.3 million units.
Meanwhile, Honda plans to begin production in its newly built car manufacturing plant with the annual capacity of 200 thousand units in Mexico. The new plant of Mazda with the annual capacity of 140 thousand units has begun the production in 2013. As for Ford, it plans to invest 160 billion Japanese yens in renovating the current car manufacturing lines in order to reinforce its productivity. With many car and auto parts manufacturers going into the Mexican market, Mexico will definitely become the hotspot of the automotive industry.
