5 Mar 18
News

Mexico's auto industry investments up despite NAFTA negotiations

Nearly a quarter of Mexico’s foreign direct investment (FDI) in 2017 was used for the manufacturing of transportation equipment, most of it going toward automobile and truck building and vehicle parts, according to the ministry of economy.

While US$3.52bn was invested in the auto parts industry, US$3.35bn was used for the manufacturing of cars and trucks, resulting in an increase of 35% year-over-year.

According to Moody’s analyst Alonso Sánchez, the ongoing NAFTA negotiations do not seem to be affecting the vehicle industry very much, especially from companies like Toyota, Volkswagen, and Audi, local news service Vanguardia reported.

Overall, Mexico received US$29.6bn in FDI last year. Another sector showing robust results was energy which rose 31% to US$4.30bn.

With negotiatoins still underway, we have yet to see how will they will affect the industry in the coming months. 

Authored by: Daniel Bland