Mexico’s Industrial & Logistics Location Summit...Mexico’s Industrial & Logistics Location...
Transcript of Mexico’s Industrial & Logistics Location Summit...Mexico’s Industrial & Logistics Location...
Mexico City
August 6-7, 2014
Mexico’s Industrial & Logistics Location Summit
Manufacturing - Logistics - Real State
Automotive Industry
Location Trends
Fausto Cuevas Mesa
General Director
Asociación Mexicana de la
Industria Automotriz, A. C.
Mexican Automotive Industry
• Contributes with 3.5% of
total GDP and 19.8% of
manufacturing industry
GDP.
• Impacts more than 23
industrial sectors.
• Employs13.4% of total
industrial labor (2010).
Automotive GDP in Mexico
Light Vehicles
Assembly Plants in Mexico
Source: AMIA.
New plants announced:
Audi (Puebla)
Nissan-Daimler (Aguascalientes)
BMW (San Luis Potosí)
Research Centers and
Auto Test Tracks in Mexico
Source: Unidad de Inteligencia de Negocios – PROMEXICO.
Investment
• Mexico's automobile and auto parts manufacturers generated 20.8% of total
foreign direct investment (FDI) in 2012.
• Automotive industry new investments during 2006-2012 period added 13.283
billion dollars, an 8.8% share of total FDI received in Mexico during that
period.
Automotive Foreign Direct Investment
(million dollars)
Remunerations
Automotive industry
remunerations are
more than double
of average salaries
paid within the
manufacturing
sector.Automotive and trucks manufacture
Auto parts manufacture
Manufacture industry
0 5000 10000 15000 20000 25000
21582
12162
9354
Pesos per month
Source: INEGI. Censos económicos 2009.
* Las remuneraciones consideran el promedio de todo el personal ocupado incluido en nómina, incluye sueldos salarios y prestaciones.
Production and Exports
• Mexico is ranked as the 8th vehicle manufacturer and the 4th
exporter in the world.
Source: ANFAVEA, AMIA, FOURIN y ADEFA. Source: JAMA, VDA, KAMA, AMIA, ANFAVEA y ADEFA..
Brazil Mexico Thailand Argentina
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000jan-jun 2013
jan-jun 2014
Japan Germany Korea Mexico Brazil Argentina
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
jan-may 2013
jan-may 2014
Production of vehicles and trucks
ImportedNational
Gross value added
33.9% 36.1%
30.0%
Intermediate demand
66.1%
• 66.1% of the
value of all
vehicles
produced in
Mexico is added
within our own
Country.
Source: INEGI. Sistema de Cuentas Nacionales. Matriz de Insumo-Producto. Matriz simétrica a precios básicos, 2008.
* Production Value = Intermediate demand + Gross value added
Production and Exports
• 2013:
– More than 80% of total production goes to foreign markets.
– Contributed with 22.5% of total value of Mexican industry sector exports.
Light vehicle production
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
2,022,2412,102,801
1,507,527
2,260,774
2,557,550
2,884,8692,933,465
1,488,1621,597,594
domestic
foreing
Light vehicle exports
0
500000
1000000
1500000
2000000
2500000
3000000
1,536,7771,613,3131,661,4061,223,3331,859,5172,143,8842,355,5642,423,0841,160,8811,273,571
Source: AMIA, with member’s data.
Production and Exports
• Mexico has become the second major
supplier of light vehicles for US market
• 11.1% of US domestic market is
supplied with Mexican vehicles
(January-June 2014)
• Mexico is second vehicle supplier only
after Canada, (January-June 2014)
Automotive Trade Balance• 2013 Automotive
Trade Balance
surplus was 38.77
billion dollars.
• Automotive exports
value was 1.7 times
crude oil exports and
3.3 times of
remittances.
• Automotive Trade
Balance surplus was
4.5 times higher than
the one resulting from
oil products exports.
Source: BANXICO.
* Automotive includes: 8702 - Vehículos automóviles para el transporte => 10 personas; 8703 - Automóviles tipo turismo; 8704 - Vehículos para
transporte de mercancías; 8706 - Chasises con motor; 8707 - Carrocerías; 8708 - Partes y accesorios de vehículos; y 8711 - Motocicletas.
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
5,333 5,315 82169435.828498.759308.3710553.7510970.4510906.449088.129801.998843.659088.5113330.1914410.9715346.3213202.2723759.7728917.0532244.2938773.69 11,273 13,177
Million dollars
17%
Why do OEM’s decide to
invest in Mexico?...
Elements that make Mexico
attractive for major investments
i. Geographic Location.
ii. Network of free trade agreements with major regions around the
world - Zero tariffs in major markets -
iii. Automotive supply chain strength
iv. Human resources, young and eager to learn
(technicians and engineers).
v. Economic Stability.
…and very important: the Government is a major partner to help
land investments!
… and the opportunity in
the supply of auto parts.
Tier 1 Suppliers
- Illustrative -
Source: AMIA with INA’s data
Supply Capacity
Source: PROMEXICO. The Auto Parts Industry, Business Intelligence Unit.
Supply Capacity
Source: PROMEXICO. The Auto Parts Industry, Business Intelligence Unit.
Market value and investment
opportunity in the supply chain in Mexico
• 71% of total demand for processes is imported, therefore, there are
huge investment opportunities for foreign companies.
• Some of the most demanded processes are stamping, casting,
forging and machining.
The opportunity
described in the top ten
supply processes for the
automotive industry,
which account for 85% of
the opportunity identified
by ProMéxico.
Source: PROMEXICO. The Auto Parts Industry, Business Intelligence Unit.
PROMEXICO’s calculations.
Data in billions of dollars.
Domestic yearly sales
Source: AMIA, with member’s data.
0
200000
400000
600000
800000
1000000
1200000
1400000
Light vehicles
Domestic market: similar countries
Source: ACARA, AMIA, ANFAVEA, ANPACT, World Bank, IBGE, INEGI and INDEC.
Argentina Brasil México
Vehículos por cada mil habitantes
Main Challenge: Domestic Market
Main reasons explaining the gap between sales and market potential:
• Indiscriminate imports of used vehicles from USA
• Low financing levels for vehicles sales
Imported used vehicles
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
776077157515012918451031048272909470483596889458114644209258,983226,372
years
Used vehicles imported *
Δ -12.6%Δ -12.6%
Source: AMIA whit SAT data.
* Consider used vehicle imported on the border, pick ups and general vehicles.
Challenges and opportunities ahead
• Mexican automobile domestic market potential is
2 million vehicles
• Mexico will remain as an important world’s export
base, manufacturing highly competitive vehicles.
• Auto parts industry will keep its place as a major
exporter. However, local supply chain still needs
to be strengthen (tier 2 and tier 3).
¡ T H A N K Y O U !
Fausto Cuevas Mesa
General Director
Asociación Mexicana de la Industria Automotriz, A. C.
(55) 5272-1144
Mexico City
August 6-7, 2014
Mexico’s Industrial & Logistics Location Summit
Manufacturing - Logistics - Real State