Mexico is considered one of the most important manufacturing platforms for the automotive industry in the Western Hemisphere . With an impressive two digit annual growth rate in total units manufactured of automobiles, trucks and buses, Mexico is becoming a target export market for automotive related industries, including parts, sub-assemblies, consumables and services for the industry.

                The Mexican automotive industry contributes 2.9 percent of GDP and represents 13.5 percent of the manufacturing sector. Automotive production increased from 457,000 units in 1985 to over 1,933,000 units in 2000. The number of automobile brands sold in Mexico increased from nine to 17 from 1985 to 1999.

                A number of auto firms have set up manufacturing plants in small and medium-sized cities in Mexico to serve the export and local markets. Nissan - recently merged with Renault - established its main manufacturing facility in Aguascalientes , investing more than $1 billion. General Motors established a large award winning operation of light trucks and SUVs in Guanajuato and has plans for an 11 percent production increase in the next year. The other companies such as Cooper Standard, Donaldson, American Axle, SMC and U.S. Manufacturing also have their operation in the region.

                The automotive industry represents the largest and fastest growing manufacturing sector in Mexico . The market for automotive parts in Mexico totaled $134 billion in 2001, with imports from the U.S. accounting for 28 percent. Growing 6 percent from 2001, the 2002 market was $142 billion. The growth was less than expected due to the U.S. economic slowdown which affected the auto parts industry more than other sectors. Mexican auto parts manufacturers are confident that this sector will increase over 7 percent in 2003, especially in after market auto parts. The recent announcement of the opening of the border for imports of new cars ...

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