Taking Interest and Studying The Potential of Allocating Time to Invest in Mexico
Mexico is popular for its biggest car industry i.e. automotive industry in Latin America. The automobile market in Mexico is larger than any other country, including Brazil. This wide market of an automobile industry has thus given businessmen multiple business opportunities, especially on insights regarding how to invest in Mexico.
Automobile Industry of Mexico
The speed at which automobile industry is growing since last ten years is astonishing and the numbers will surely fascinate you. The production and the export range of automobile industry is constantly rising. Last year in 2017, there was a 9% rise in the production of the automobiles where over 3.7 million automobiles were developed.
The export of automobile industry to Europe, and Germany increased by 45% while to Asia, it increased by 38% which makes it a fantastic business. To expand the trades in the automobile industry, the new deals such as Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Mexico is one of the leading exporters of the light motored vehicles and it is ranked 6th in the world for auto part industry, thus providing more than 800,000 jobs.
For the fantastic statistics of Mexico in automobile industry, it has attracted Volkswagen, Nisan and General Motors to invest in Mexico’s automobile market for expanding their business. Volkswagen has invested around USD 1 billion in the year 2017 to expand their factory in Puebla. Similarly, General Motors expanded their business in 2017 in Mexico.
Potential of Domestic Market
Apart from the amazing statistics and figures of production and exports of automobile in Mexico, what is more fascinating is the endless market opportunity in this region. The working population of Mexico is 59 million. Around 35 million of Mexican population contribute as informal workers thus doesn’t require credit ratings or social security to buy a car. Thus, these facts make the marker of Mexico, an amazing place to trade. The market potential of Mexico can increase through government’s assistance and additional schemes with external investment.
Why should you invest in Mexico?
The huge potential of automobile market in Mexico and the increasing trades between Mexico and other countries, makes us wonder what has made Mexico grow at a faster rate? The foremost reason behind its vast potential is it’s geographical placement with its excellent infrastructure and connectivity of airports and ports. Mexico has become a buffer zone between USA, the largest economy of the world and the South America to market its automobiles. Second reason for its potential is that the cost of production is relatively lesser than the North America which is attracting big brands to invest in Mexico. Not only this, the cost of producing metal parts in Mexico is 17% lesser than that of North America.
Thirdly, Mexico has free trade agreements which gives an easy access to 46 markets.
Thus, investing in Mexico can be highly beneficial for its infrastructure, low production cost and the free trade agreements and this very well explains how Mexico has established itself in the manufacturing of cars.
