TCI 2016 Lessons learned on the Automotive Cluster in Puebla, Mexico
Mexico Automotive Sector.ppt
Transcript of Mexico Automotive Sector.ppt
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Mexicos AutoMotive
SectorMay 2007
Prepared by: Office of Representation of Mexicos Secretary of Economy in Japan
Mexico-Japan Economic Partnership Agreement
Embassy of Mexico
Email: [email protected], Tel. 3506-6681
mailto:[email protected]:[email protected] -
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Mexicos AutomotiveSector
Mexicos automotive industryis one of the countrys mostimportant sectors in terms ofFDI, exports, and employment
Mexico is one of the top ten
global manufacturers ofvehicles
In 2006, Mexico produced1,978,771 vehicles
During the first four months of2007, Mexico produced597,382 automobiles
0
200,000400,000
600,000
800,000
1,000,000
1,200,0001,400,000
1,600,000
1,800,000
2,000,000
2003 2004 2005 2006
Nu
mberofVehicles
Source: Mexican Association of Automotive Industry
(AMIA)
Mexicos annual vehicle production
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Mexico: Among the Worlds Top Ten Countries in the
Production and Exports of Automobiles
FTA European
Union
CEAArgentina
FTA Chile
FTA
NicaraguaFTA
Costa Rica
FTA Bolivia
FTA
Colombia
NAFTAFTA Japan
FTA
Honduras
El Salvador and
Guatemala
FTA Israel
CEABrazil
FTA Uruguay
Automotive products and finished vehicles produced in Mexico are
exported to more than 30 countries, including Japan, under preferential
market access through Mexicos FTA network
FTA EFTA
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Mexicos Automobile Exports
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2003 2004 2005 2006
NumberofV
ehicles
Source: Mexican Association of Automotive
Industry (AMIA)
In 2006, Mexico
exported1,536,768
vehicles, a29.5%increase from the
previous year
From January to April
2007, Mexico exported
449,338 vehicles
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Mexicos Autopart Industry
The autopart industry in Mexico comprises
approximately 350 companies in the Tier 1
category. About two thirds of those
companies are foreign owned
Mexico needs to expand its manufacturing
base in Tier 2 and 3 suppliers. The Mexico-
Japan EPA represents an opportunity to
Japanese autopart companies in Mexicos
growing automotive manufacturing sector
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Structure of Mexicos Auto Parts Industry
Tier 2
Tier 1
Tier 3
Assemblers
345 companies
(mostly foreign)
14 companies
Source: INA (Mexicos National Industry of Autoparts)
7.0% of Total Manufacturing GDP
8.1% of Total Manufacturing Exports
Total Production: 1.677 Billion Dollars
(Estimated, 2004)
Parts Suppliers
Approx.
1,000 companies
(About 30%
are domestic)
Casting
Components, Press,Plastic, Aluminum,
Logistics, Bearing,
Machining, Die
Casting & Molding,
Machine Tools
Air Conditioning,
Engine Components,
Steering, Suspension,
Logistics, Die Casting& Molding, Electronic
Components
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Strengthening of Mexicos Support Industries
Mexicos Ministry of Economy Fosters the Formation ofSupporting Industries in the Auto Parts Sector
StrengtheningMexican Small and
Medium Enterprises
Strengthening
Competitiveness
of Japanese Companies
in Mexico
Formation of
Mexico-Japan Supply Chain
Win-Win Business Opportunities
Strategic Alliances between Japanese SMEs and
Mexican companies to become suppliers
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Mexicos Exports ofAutoparts
According to the USDepartment ofCommerce, in 2006,Mexico was the US
largest supplier ofmotor vehicle parts
In 2006, Mexicanexports of motor
vehicle parts to theUS totaled 21 billiondollars, an increaseof 7.4% from a yearearlier
0
5,000
10,000
15,000
20,000
25,000
Mexico Canada Japan
Motor Vehicle parts imported by the US
in 2006
MillionUSD
Source: US Department of Commerce
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MEXICO TOTAL VEHICLE SALES
2005, 2006 and 2007
PASSENGER VEHICLES 713,379
COMMERCIAL VEHICLES 415,974
2005 1,129,353
PASSENGER VEHICLES 680,942COMMERCIAL VEHICLES 455,929
2006 1,136,871
Source: Mexican Association of Automobile Dealerships (AMDA)
PASSENGER VEHICLES 166,486
COMMERCIAL VEHICLES 112,141
January-March 2007 278,627
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MEXICO TOTAL VEHICLE SALES, EXPORTS
AND PRODUCTION
2004, 2005, 2006 and 2007
Source: Mexican Automotive Manufacturers Association (AMIA)
SALES Exports Total
ProductionRetail Sales Whole Sales
2004 1,095,796 1,096,777 1,094,306 1,507,175
2005 1,131,768 1,128,397 1,186,346 1,606,460
2006 1,139,718 1,160,037 1,536,768 1,978,771
January-April
2007
355,235 349,605 449,338 597,382
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Production of Japanese Car Companies Manufacturing
in Mexico
Honda Nissan Toyota Total*
Total 2006 24,262 408,439 33,209 465,910
2006- 2005 % 3.1 17 n.c. 25
January 2,130 47,120 -- 49,250
February 1,912 40,750 2,332 44,994
March 2,150 42,467 5,226 49,843
April 942 37,301 1,922 40,165
2007 Acum. 7,134 167,638 9,480 184,252
Jan-April
06/07 % - 12.9 30.1 - 18.8 23.8
Source: Mexican Automotive Manufacturers Association (AMIA)
* Automobiles
In 2006, Japanese
car companies were
responsible for 24%of Mexicos total
production
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Retail Sales of Japanese Car Companies in Mexico
Acura HondaMazda
** Mitsubishi NissanSubaru
**
Suzuki
** Toyota Total*
Total 2006 1,631 47,471 7,495 16,751 228,315 308 4,413 60,088 366,472
% 2006-
2005 58.3 23.9 n.c. 11.6 -2.8 n.c. n.c. 70.1 0.7
January 174 4,112 1,100 1,478 19,261 44 448 4,357 30,974
February 156 3,596 1,166 1,313 18,026 45 404 4,166 28,872
March 124 4,097 1,356 1,500 18,358 40 401 5,804 31,680
April 124 3,419 1,154 954 14,115 34 329 4,549 24,678
2007Acum 578 15,224 4,776 5,245 69,760 163 1,528 18,876 166,204
% Jan-April
06/07 37 1.6 168.9 1.4 - 3.2 n.c. 24.3 16.9 3.9
Source: Mexican Automotive Manufacturers Association (AMIA)
* Automobiles ** New entrants in Mexico as a result of the EPA quota system
In 2006
Japanese
automotive
companies sold
366,472vehiclesin Mexico,
increasing to
32% their
market share in
the Mexican car
market
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Exports of Japanese Car Companies Established in
Mexico
Honda Nissan Toyota Total*
Total 2006 15,107 208,820 10,111 234,038
% 2006-2005 4.2 33.5 n.c. 29.5
January 1,155 24,734 -- 25,889
February 1,140 24,639 2,332 28,111
March 1,902 27,890 5,226 35,018
April 150 18,294 1,922 20,366
2007 Acum. 4,347 95,557 9,480 109,348
% Jan-April
06/07 - 14.2 67.9 n.c 76.4
Source: Mexican Automotive Manufacturers Association
(AMIA)
* Automobiles
In 2006,Japanese car
companies
manufacturing in
Mexico accounted
for 15.2% of the
country's
automobile
exports
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Mexico-Japan Economic Partnership
Agreement
The EPA has also contributed to the establishmentof four new Japanese companies in Mexico that arenow selling vehicles in the domestic market: Mazda,
Isuzu, Subaru and Suzuki . In late 2007, Hinomotors will start commercialization of trucks inMexico.
For fiscal year 2007 (April 2, 2007 to March 31,2008) the EPA has allocated a quota of 56,844vehicles to be imported to Mexico from Japan.
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Import Quota for Japanese Car Manufacturers(General Tariff will be eliminated in April 2011)
Company
Unilateral Quota*1 M-J EPA Quota Total*2
2005 2006 2005 2006 2005 2006
Established in Mexico 58,218 65,305 46,599 45,270 104,817 110,575
Nissan 27,218 29,305 23,718 23,029 50,936 52,334
Honda 5,000 9,000 8,900 8,652 13,900 17,652
Toyota 16,000 17,000 6,664 6,487 22,664 23,487
Mitsubishi*3 10,000 10,000 7,317 7,102 17,317 17,102
Newly Entered in Mexico 0 0 8,240 11,315 8,240 11,315
Mazda 0 0 3,340 5,502 340 5,502
Suzuki 0 0 3,000 4,092 3,000 4,092
Isuzu 0 0 1,900 1,221 1,900 1,221
Subaru 0 0 0 500 0 500
Unused Quota 0 0 0 0 0 0
Total 58,218 65,305 54,839 56,585 121,297 121,890
(Unit: vehicles)
*1) Car manufacturers that produce in Mexico are given quotas for units equivalent to 10%
of its annual production
*2) EPA quotas are given for units equivalent to 5% of the total sales in the previous year
*3) Mitsubishi uses quotas allocated to Daimler Chrysler
Source: Mexicos Secretary of Economy