Mexico's once-thriving automotive sector, long a cornerstone of its industrial economy, is navigating turbulent waters as foreign investment plummets to alarming levels. New data reveals a 42% year-on-year decline in production investments for 2024, casting shadows over the country's manufacturing future.
The slowdown comes as global automakers reassess supply chain strategies amid shifting trade dynamics. CGTN correspondent Alasdair Baverstock reports from Mexico City that production lines are running below capacity, with some plants implementing temporary closures.
This development carries implications for Asian investors and manufacturers with ties to North American markets. Industry analysts suggest the downturn could accelerate nearshoring opportunities in Southeast Asia while prompting renewed discussions about Mexico's competitiveness in electric vehicle production.
Economic observers note the contraction coincides with increased Chinese automotive exports to Latin America, though experts emphasize market dynamics remain complex. The investment slump raises questions about Mexico's ability to maintain its position as the world's seventh-largest passenger vehicle producer.
