When someone mentions Mexico, most of the first associations are sombrero hats, mariachi music, the richness of burritos, the beautiful beaches of Acapulco. Few people think of that North American state as an economic leader, which it truly is, in terms of parameters.
The industrial growth of Mexico is still growing and expanding. However, its industry provides twice the national income (50%) than agriculture. The most developed branches of the Mexican industry are the cotton textile industry, which employs 100,000 workers, and the processing of agricultural products, especially sugar cane (2.7 million tons of sugar), tobacco, and fruit. Between 2003 and 2009, the sector recorded an average annual growth of 17.1%, and in 2010 it received $888 million in foreign direct investment. Mexico exports electronics worth $57.9 billion, 83% to the United States, 6% to Canada, and the rest predominantly to the Netherlands, Colombia, and Finland.
The heavy industry development is of the most recent date. It emphasizes oil refining and ferrous metallurgy. The original processing of copper, lead, and zinc ore is well developed. We should not overlook the cement, glass, and artificial industry as well, but the automotive industry is the one which is very, very important. This southern neighbor of the USA is the leader in the export of beer and flat-screen TVs, the second largest exporter of refrigerators in the world, the third in mobile phone, the fourth car…
This southern USA neighbor has a long and rich car manufacturing history, with the first vehicle manufactured in 1903. Since then, this industry only grew, and with a couple of excellent trade agreements, Mexico is now one of the leading car producers. Between 2003 and 2009, the sector recorded an average annual growth of 17.1%, and in 2010 it received $888 million in foreign direct investment. Mexico exports electronics worth $57.9 billion, 83% to the United States, 6% to Canada, and the rest predominantly to the Netherlands, Colombia, and Finland.
Mexico today has a very developed automobile industry, and factories in this country are from several large manufacturers. The VW Beetle is one of the traditional and classic automobiles that were produced in Mexico, and the one constructed for the most prolonged period, almost half a century – from 1955 to 2003. It was this country and its factories from which most copies of that model came out and deployed all over the globe. Along with the factories of almost all most influential automotive companies, Mexico also has two domestic car producers: Mastretta and DINA.
The fact that the automotive industry brings Mexico more than a hundred billion dollars per year says a lot about how big of an impact this industry has and what it means for its economy overall. And the fact that most of the leading manufacturers, such as Volkswagen, Toyota, Chrysler, Mercedes Benz, Ford, etc. have at least one plant in that country, only confirm that it is respected and looked upon as one of the giants in this field of industry.
Most of the manufactured vehicles go to America, but Mexico also supplies many countries across the world. In recent years this country has become the fourth largest exporter of four-wheelers in the world. Mexico has a competitive advantage due to free trade agreements signed with many countries. To explain how important this agreement is, the only thing that needs to be said is that with this deal, Mexico can export cars around the world without paying export taxes. This agreement includes South America because of NAFTA, as well as for many countries in North America, Europe, and Japan. No other country in the world has this advantage, which can explain how just in a few years, Mejico became such a ‘big player’ in the automotive industry.
According to the World Bank, Mexico is the 15th largest economy in the world, with last year’s growth of 3.9%, gross domestic product of $ 1.258 billion, and per capita income of $ 9.863. It is an export-oriented economy, which is not surprising, considering that it borders for two thousand miles with the largest importer in the world – the United States of America. Ninety percent of their exports are industrial products.
Data from the end of 2019 shows not only that Mexico advanced from fifth to fourth place in the world list of car exporters, over 4 million exported vehicles, but also as a place where most of the large car manufacturers are planning to build their electric cars.
As another benefit, cooperation between China and Mexico has reached a new level and now includes the automotive industry. In particular, JAK Motors, a Chinese state-owned car, and bus company want Mexico to become their stronghold in Latin America. JAK “Motors” arrived in Mexico in 2017 and now has a factory at Ciudad Sahagún, Tepeapulco (state of Hidalgo), and so far, six car models are on offer.
With all mentioned above, it is quite clear why it is the most diverse automotive production country in the world. Besides the automotive sector, tourism also represents one of the most important industries in Mexico. One had an immense influence over the other because when car manufacturing companies increasingly started to show their interest in opening factories in Mexico, which also spiked the interest for visiting this country, which resulted in tourism revenue of over 23 billion USD in 2019.
Mexico has something to offer for everyone, and visiting it should be on everyone’s list. Whether you want to experience the Mexican way of life, to enjoy sightseeing in many of its famous and astonishing sites, to enjoy in numerous off-road trails, or even to buy a car, one thing is for sure, and that is – having fun and making incredible memories. To have the best experience when driving to and visiting Mexico, a good thing to consider is having your vehicle and your extra items insured suitably. For those who want and need more information on what this insurance includes, what are the advantages of it, and how much does it costs, visit the Mexican Insurance Store.