Puebla has capitalized on three investment projects focused on electromobility, accumulating US$2.016 billion and generating 500 new jobs. This was detailed by the Automotive Directory, a business link and intelligence platform for the sector.
The industry association revealed data that is relevant for decision-makers in Mexico’s industry and its supply chain with the publication of its “Automotive Investment Report 2Q 2024”, which was reviewed by Cluster Industrial.
This document gathers the most important results of Foreign Direct Investment and Nearshoring in the automotive industry during the first half of the year.
You may also read: Puebla Breaks Records in Electric Vehicle Sales
Key Data
In the first half of 2024, automotive-related investments of US$7,802.31 million were accumulated, representing a drop of 36.57% compared to US$12.26 billion in the same period of 2023.
The decline is due in some part to the electoral context Mexico went through, which usually slows down the arrival of investment announcements and plant inauguration events.
“This does not mean that there are fewer investments, but rather that they have been shifted to the second half of the year,” said Daniel Romo, Head of Business Intelligence at Directorio Automotriz, in the report.
In terms of the type of investment, 72.7% of the first half of the year was focused on companies that set up operations in the country, mainly from Asia.
On the other hand, 26.4% corresponded to expansions or modernization of existing plants. In previous years, this type of investment dominated the automotive landscape in Mexico. However, with the electrification and nearshoring boom, companies from Asia, Europe and the United States are finding the country a fruitful territory in which to do business.
This hypothesis is supported by analyzing that, during the first half of the year, of the 110 investment projects, 40 are related to electrification.
The projects in Puebla include an investment by Volkswagen of 942 million dollars in its plant in Cuautlancingo for the assembly of electric and hybrid vehicles, and an investment by Audi of 1,074 million dollars in its plant in San José Chiapa for the production of electric vehicles. In addition, in Cuautlancingo, Kirchhoff Automotive invested in stamping and welding of seats and fender supports for electric vehicles.
Latam Mobility in Mexico
After a successful start to the year in Monterrey, Latam Mobility, the largest sustainable mobility community in Latin America, closes 2024 in Mexico City.
There will be two days, on October 15 and 16, where industry leaders and private sector representatives will provide perspectives on mobility, electromobility, sustainability, among others.
The meeting will be held at the World Trade Center in Mexico City. For participation information click here.
