What will the automotive industry look like in 2025?

The automotive industry felt the effects of the COVID pandemic, as all the rest of the world did. But ever since June it has shown signs of recovery. Sales and production have been rising in the past couple of months.

It might take some years, but the automotive industry will rise again

Slow but steady: this is a way to describe the Mexican automotive industry recovery. It has proven to be one of the most resilient auto parts industries in Latin America and shows signs of full recovery by early 2024.

According to INEGI, the production within the automotive industry in Mexico grew 0.65% in the months since reopening the market.

“Given the numbers shown in July, we can talk about a reactivation of this industry…” stated Fausto Cuevas, member of the Mexican Association of the Automotive Industry.

This is backed up by a statement given by Oscar Albin, President of the National Auto Parts Industry. “We are not doing as bad as we thought we could have been,” said Albin.

This is great news for all the sectors that the automotive industry include.

What does the automotive industry include?

automotive industry

Simply put, the auto parts industry does what it implies: auto parts and vehicles. But it goes deeper than that. This is an industry that is responsible for 3% of the Mexican GDP and 32% of all Mexican exports. 

The auto parts industry is also responsible for designing, developing, and selling new automobiles. This is achieved through the production and assembly of new auto parts. A process that requires precision. This production has many sub-processes that have to be done with accuracy in order to prevent mistakes.

Luckily, this is made easier by the implementation of Industry 4.0, made possible by the Internet of things. Letting machines do the most meticulous work is efficient and safer. It will lead to better quality auto parts production, thus better automobiles.

With a greater production quality comes a better grasp on the market, making the automotive industry grow.

Is the automotive industry in Mexico growing?

automotive industry

The short answer is: yes. Even under the effects of the pandemic, the automotive industry in Mexico is growing. As resilient as the auto parts industry in Mexico is, it is also reaching the market in new ways. 

Sales in the automotive industry have been rising, more so in the digital space. E-commerce is playing a big role in the recovery and growth of the auto parts industry.

“The automotive industry fell all around the world (due to the pandemic), but now we see a new tendency. While sales are not quite there as before the pandemic, the growth has been steady.” explained Iván Marchant, Comscore Mexico Sales Vicepresident.

Igor Dunmas, General director of Peugeot Mexico has also referred to it as a “great surprise”.

“The Mexican market is one of Latin America’s best behaved markets. It resists more than Brazil’s, Chile’s, Ecuador’s, Colombia’s, and Peru’s market, which all go lower than the Mexican market.” Stated Dunmas in an interview with El Economista

This all points to a healthy 2025 panorama for the automotive industry in Mexico.

With all the signs of a complete recovery and growth, the automotive industry in Mexico is more than back on its tracks. It is now a great opportunity for any auto parts company to enter this market. Thus, here at VYNMSA we would like to assist you in settling in this country. 

We are one of the leading industrial real estate developers in Mexico. Plus, we have over 25 years of experience and have delivered over 350 projects to fully satisfied customers. We are also fully equipped to assist you in developing your BTS projects. All while offering lease and sale solutions that always have a win-win approach. 

We also have around 20 inventory buildings ready for immediate occupancy. This is a total space of 1.5 million SqFt across Northeast and Central Mexico. 

Contact us and bring your company to Mexico with VYNMSA and enjoy the benefits of being part of this country’s resilient automotive industry.

comercial@vynmsa.com

Phone: +528122028599

Source: El Economista, Marketing 4 E-commerce, El Financiero, AVANTIS, La Jornada, INEGI

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