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Mexico: A Global Power in the Automotive Sector

Karla Salinas | 15.05.2014

The establishment of new automotive plants in Mexico by the German BMW and the Korean Hyundai reinforce projections that Mexico will displace Brazil as the seventh producer in the world in 2016, Armando Soto, President of the Consultants Firm Kaso & Asociados, estimates.

The establishment of new automotive plants in Mexico by the German BMW and the Korean Hyundai reinforce projections that Mexico will displace Brazil as the seventh producer in the world in 2016, Armando Soto, President of the Consultants Firm Kaso & Asociados, estimates.

Mexico may be even fighting for the sixth position with South Korea or India, Soto, who specializes in the automotive sector, added.

In 2013 Brazil produced 3.7 million automobiles and commercial vehicles, a 9.9% increase, while Mexico assembled 3.2 million units, posting 1.7% year-to-year growth, according to OICA, the International Organization of Motor Vehicle Manufacturers.

BMW and Hyundai will invest around US$1 billion each in the construction of automobiles assembly plants in Mexico, with an initial yearly production of over 150,00 units in each of these factories, with gradual expansions.

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