Other advantages include sound economic policy, energy, infrastructure and tax reforms, and relatively low labor costs. The lion’s share of foreign investment goes into automobile manufacturing and automotive subcontracting, the pharmaceuticals and chemicals industries and logistics.
Mexico is an increasingly important market and production location for companies all around the world. German companies are a case in point. Volkswagen has had a large-scale manufacturing presence there for many years. Volkswagen, Daimler, BMW and Audi have all recently either opened up new or expanded existing plants in Mexico. And when new plants are opened, new subcontractors tend to follow. Figures released by the German Association of the Automotive Industry (VDA) indicate that the number of German subcontractors in Mexico has jumped from 40 to 150 since 2010. The total number of German companies in Mexico has also increased sharply, and, according to the German-Mexican Chamber of Commerce, is currently sitting at around 2,000.
Market opening and economic growth are also opening up new business opportunities in areas other than the automotive industry. Key areas here include the energy sector, the aerospace industry, pharmaceuticals and medical technology, mining, electrical engineering and logistics.
Find out more about our Partner Country Mexico on the Homepage of ProMéxico .