Top 10 opportunities in the Automotive and Auto parts industries in Mexico - AND HOWTO START SERVING THOSE CLIENTS FROM A COST COMPETITIVE LOCATION
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Top 10 opportunities in
the Automotive and Auto
parts industries in
Mexico
… A N D H OW TO S TA RT S E RVI N G T H OSE C L I ENTS F ROM A C O ST C O MP ETI TI VE LO C ATI ONAbout American Industries Group
American Industries Group has helped over 200 global companies to successfully start up and grow distribution and
manufacturing operations throughout Mexico since 1976 through Site Selection, Incubator Programs, Administrative “Shelter”
services and Industrial Real Estate.
El Paso
Juárez Shelter & Start-up Services
Gómez Farias • 53 Customers currently served
Chihuahua • Over 11,700 Customer’s headcount
Delicias
Camargo Monclova • Over 30,000 trouble-free import and export
Reynosa transactions per year
Gómez Palacio & Torreon Monterrey
Saltillo
San Luis Potosi Real Estate
Guadalajara
León Querétaro
We have built over 12 M Sq. Ft. Portfolio in
Locations where we serve Silao México D.F. the most important industrial regions
our clients in Mexico throughout Mexico
Regional Offices, Incubator Locations
Shelter and/or Real Estate CustomersHow we help companies to succeed in Mexico!
We are present at all stages of your industrial
business needs in Mexico:
Start up under an
Site Expansion in other Supply Chain /
Incubator
Selection regions in Mexico Divisions Relocation
Shelter Program
We help you grow your
We help you find the business by working
We take care of all start
right location for together with industrial
up, legal, operational and
your operations in clusters and
environmental permits,
Mexico including the associations to promote
human resources,
coordination of your business in
customs, logistics, fiscal,
business agendas in different regions in
accounting and all the We help you to educate
different regions. Mexico.
administrative part of the and relocate your foreign
business. suppliers or other
divisions near your
operations in Mexico.Contents Automotive and Auto parts indicators and trends in Mexico Top 10 Automotive OEMs and their production forecast Top 10 Auto parts currently needed to support imports and exports in Mexico Mexico’s Industrial Incubator Program
Automotive and Auto parts indicators and trends in Mexico
Production of vehicles in the World, 1997-2013
58 % Developing Markets in 2020
Annual average rate of growth , 2013-2020 Other
Global Markets 3.8% Southeast
Developing Markets 5.8% Asian Nations
Developed Markets 1.5%
South
America
India
Million Units
Eastern
Europe
China
Japan and
Korea
Western
Europe
North
America
Source: IHS Global InsightProduction Export/Domestic Market Ratio
Mexico exports up to 81.7% of its vehicle production output, therefore it becomes important to
understand its free trade agreements network.
China 4.7%
USA 19.1%
Japan 52.1%
Germany 82.5%
South Korea 70.7%
India 17.2%
Units
Brazil 13.9%
Mexico 81.7%
Domestic
Canada 87.2%
France 73% Exports
Spain 88.7%
UK 77.6%
Czech R. 88.5%
0 5,000,000 10,000,000 15,000,000 20,000,000
Source: ProMexico with information from OICA, Global Trade Atlas, ANFAVEA, AMIA and CAAMAdvantages in costs of manufacturing and transportation
In 2015 Mexico will offer savings of 16 % with regard to the manufacturing costs in USA, while China will have reduced
its advantage in costs (considering “Total Landed Cost” to USA)*
Share of the cost in USA
1.05
1.00 USA
0.95 China
0.90
0.85 Mexico
0.80 India
0.75
0.70
0.65
0.60
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Source: data and forecast of Alix Partners (Manufacturing Outsourcing Cost Index)
*Total Landed Cost to USA includes manufacturing and transportation costs to USAForeign Direct Investment and Free Trade Agreements
After the enactment of the North America Free Trade Agreement (NAFTA), Foreign Direct Investment
amounted more than 36 billion dollars. European association of Free trade
Mexico’s Free Trade Agreements
with access to 45 countries Iceland, Liechtenstein, Norway and
Switzerland
Foreign Direct European Union
Investment in
Automotive Sector
(million dollars)
North America
USA and Canada
Triangle of the North Japan
Honduras, El Salvador
and Guatemala
Pacific Alliance
Colombia
Chile
Peru
Mexico
Source: Kasso & Asociados with data from Mexican Ministry of Economy and Mexican Central BankLight Vehicle Production in NAFTA Region
USA 65%
Million units
Canada 11%
Mexico 24%
NAFTA = 17.9
Million units
*From 1997- 2012 data from AMIA for Mexico and OICA for USA and Canada. From 2013- 2019 forecast
from IHS Global Insight.
Source: INA with information from AMIA, IHS Global Insight and OICAProduction of light vehicles in Mexico 2002-2019
+ 47%
Source: INA with information from AMIABalance Trade of Automotive Sector in Mexico
During 2013, balance trade of automotive sector reached a surplus of 38,774 million dollars.
Balance Trade of Automotive Sector in Mexico
45,000
40,000
35,000
Million dollars
30,000
25,000
20,000
15,000
5,315
5,333
10,000
10,554
10,970
10,906
13,330
14,411
15,346
13,202
23,760
28,917
32,244
38,774
8,216
9,436
8,499
9,308
9,088
9,802
8,844
9,089
5,000
-
Source: Mexican Central Bank (BANXICO).
* Automotive includes: 8702 - motor vehicles for the transport => 10 people; 8703 - tourism cars; 8704 - vehicles for transportation of goods; 8706 - Chasises with engine;
8707 - Bodies; 8708 - vehicle parts and accessories; and 8711 - motorcycles.Production and exports of heavy vehicles in Mexico, 2000-2013
+ 60%
Source: ANPACTAuto Parts Production and Forecast Source: INA with information from INEGI, AMIA and IHS Global Insight
Auto Parts Production per State, 2016 (includes engines and transmissions)
Bajío Zone
26%
Source: INA with information from INEGIAuto Parts Production per State, 2013 (includes engines and transmissions)
3.6% Baja California
18.2%
Sonora
14.2%
Chihuahua
Coahuila
10.5% Nuevo Leon
5.7% Tamaulipas
Guanajuato
Queretaro
San Luis Potosi 7.3%
Aguascalientes 6.5%
Jalisco
Source: INA with information from INEGIAutomotive Industry in Mexico
This map shows the location of the light vehicles and heavy duty industry OEMs established throughout Mexico where more
than 400 supplier companies are expected to be fully operational before 2020 transforming Mexico in the 3rd exporter of light
vehicles at an international level.
Are you ready
to start
providing your
products and
services to any
or some of
these supply
chains?Automotive Clusters and Supply Chain Integration
This is a sample of an automotive regional cluster in Mexico, where the different OEMs integrate different suppliers to
assemble and export their units to other countries. In order to keep growing, this cluster needs key suppliers in forging,
casting, machining, plastic injection molding and tooling, among plenty of services to integrate and finish those products.
The same is happening in other automotive clusters throughout Mexico.
When will you start
the distribution or
even manufacturing
operations of your
core business in
those automotive
clusters?Top 10 Automotive OEMs and their production forecast ARE YOU READY TO TAKE YOUR PIECE OF THIS GROWTH?
Forecast of Light Vehicle Production in Mexico, 2014-2019
Forecast of production of light vehicles in Mexico, 2014-2019
(units)
OEM 2014 2015 2016 2017 2018 2019
Nissan 643,686 683,770 762,841 884,158 922,294 939,069 Additionally,
General Motors 670,988 670,185 621,438 760,621 786,997 781,662 BMW and KIA
Volkswagen 537,840 554,204 603,346 617,047 611,667 649,607 MOTORS will
Chrysler 375,373 417,947 586,641 544,818 562,147 555,425 be adding
Ford 471,551 456,968 432,410 355,867 442,292 530,676 their
Honda 170,722 251,950 279,427 322,326 321,022 318,748 production
Mazda 89,696 178,972 200,129 253,245 257,192 236,283
forecast
Toyota 54,682 71,557 154,723 160,235 168,589 164,398
Audi 0 0 72,503 131,270 155,300 149,837 starting from
Fiat 90,160 67,014 24,366 0 0 0 2016!
Total 3,104,698 3,352,567 3,737,824 4,029,587 4,227,500 4,325,705
Source: INA with information from IHS Global InsightLight Vehicle Sales in Mexico per OEM
Total 1,099.9
Total 1,063.3
Total 905.9
Total 820.4
Total 754.9
Total 611.2
Source: INA with information from AMIAMain OEM’s and Tier One Supplier with Design Engineering Centers in Mexico
Enterprise Number of Engineers
FORD 800
Chrysler 500
General Motors 600
Volkswagen 600
Nissan 700
Delphi 1,500
Continental 700
Faurecia 300Top 10 auto parts needed in Mexico to support imports and exports ARE YOU READY TO TAKE YOUR PIECE OF THIS GROWTH?
Mexico’s Industrial Incubator Program D E S I G N E D T O M A K E I T E A S Y F O R Y O U R C O M PA N Y T O S TA RT B U S I N E S S O P E R AT I O N S T O S E R V E T H E A U T O M O T I V E O R A U T O PA RT S I N D U S T RY I N MEXICO.
Mexico’s Industrial Incubator Program: what it is
It is a program that got specially designed for companies that have no previous experience in doing business different regions
throughout Mexico.
When you sign up for this program, you will get all the
privileges, benefits and incentives as if you were already
an expert in doing business in Mexico with a large and
mature operation.
Take this opportunity as a new competitive edge for your
company where you will be conquering new markets with
a very unique advantage: being able to focus on your
clients and production!
What are the benefits that you will get?Mexico’s Industrial Incubator Program: Benefits
You will get assistance with:
B2B meetings and business agenda coordination with aerospace,
automotive and metal mechanic clusters to help you promote your
products and services.
Real estate space: starting from 5,000 Sq Ft
Freedom to start doing business in Mexico without a Legal Entity!
Legal and operational permits: fast start up in 9 weeks
Human resources: we will help you find and recruit your sales, distribution
and operations staff (starting from 5 employees).
Government incentives negotiation on technical training.
Customs: we will help you get the maximum tariffs savings from the free
trade agreements with 45 countries for your imports and exports.
Fiscal and accounting management +
NO INCOME TAX for the first 4 years
NO VAT effect on cash flow
NO Start up or Exit FEEs
NO risks: no legal or administrative liabilities
Starting at an estimated fully loaded cost per hour of $18 USD per
employee including labor, logistics, real estate and utilities.Mexico’s Industrial Incubator Program: Stages
The incubator program will help you to take your first steps in Mexico entirely focused on sales, customer service and
production and you will not face any legal or administrative risks or liabilities on your start up stage.
Request your You will get a tailored evaluation and roadmap to start operations in the regions that there might be potential for your
Incubator business to grow in Mexico.
Application You will get a tailored cost model where you will be able to compare the total cost of production per hour in each region.
Get a At this point we will coordinate business agendas in the selected regions for your operations in Mexico with industrial
Business associations and clusters.
As part of the agenda, you will be able to visit the Incubator’s real estate facilities where you will be able to operate.
Agenda in
Additionally, you will get a presentation of the different enabling services that you will get as part of the Incubator and
Mexico you will be able to meet with government officials.
At this stage you will get all permits for your operations.
You will get your human resources hired and organized (including payroll management).
Start up You will get your machinery and equipment installed.
(9 weeks) You will get all your customs & logistics set up.
You will get all paperwork and administrative tasks done so that you can start serving your clients from your new location.Sharing Responsibilities under the Incubator Program
This diagram shows the functions that you will need to perform in your new business operations in Mexico to serve your clients. The
Incubator program takes full responsibility of the blue side of the business.
General Manager
General Human
Manufacturing Engineering Quality Raw Materials Administration Resources
Inventory Operational Recruitment
Maintenance Design Scheduling Permits & Selection
Management
Just-In-Time Purchasing Environmental Training
Sorting & Kitting Labeling
delivery to clients Direct Mat compliance compliance
Purchasing Salary & Benefits
Accounting
Indirect Mat Administration
•Management to direct operations.
• Machinery & equipment. Import & Export Fiscal Payroll
• Raw materials. Accounts Payables Labor
Customs
• Full control over distribution, & Receivable Management
production and quality. Duties Optimization Union Relation
Logistics Expat Support
Your Company
American IndustriesMexico’s Industrial Incubator Program: How to qualify
You can qualify for this program if you want to start any of the following operations
Just-In-Time or distribution operation
Assembly operation
Kitting & labeling operation
Manufacturing operation
Or if you fit into any of these categories
You have little or no experience in doing business in Mexico
You don’t have a legal presence in Mexico
You don’t require a large facility
You want to experience doing business in Mexico for the first time with a low risk framework
You want to share costs with other small operations.
Are you pre-qualified for the Incubator Program?What are the Next Steps?
Request your free Application
Form to apply for the Incubator
Program today at:
www.AmericanIndustriesGroup.com/incubatorFor more information contact:
start@americanindustriesgroup.com
US Toll Free +1 877 698 3905 | Mexico +52 614 439-3631
Thank You
www.AmericanIndustriesGroup.comYou can also read
