The emergence of manufacturing in Tijuana has positioned the city as one of the premier destinations for nearshoring on a global scale.

Manufacturing companies account for 30% of Baja California’s GDP, making it one of the most important sectors in the state alongside tourism and exports, as reported by Tijuana EDC.

The main reason why this sector has thrived is due to the undeniable advantages that industrial businesses have found in the city. And the auto parts manufacturing sector is one of them, achieving exponential growth for businesses and the city’s economy.

Automotive & Auto Parts Manufacturing in Mexico: A Driving Force

The auto parts manufacturing industry in Mexico has experienced remarkable expansion and development in recent years, driven by many factors that have improved the country’s reputation internationally and attracted foreign investors.

The National Industry of Auto Parts Association reported a growth in Mexico’s auto parts manufacturing, reaching approximately $125.5 billion in 2024, with a 3.1% increase over the previous year (Pro Mexico Industry).

The industry has experienced a steady growth of nearly 17% compared to the previous year, primarily driven by exports. In January of 2024, there were 254,367 light vehicle exports recorded, according to data provided by INEGI. A significant portion of manufacturing is dedicated to foreign markets, especially the US.

Mexico received investments in the auto parts manufacturing industry from 815 businesses in 35 countries between 2006 and 2023. The leading investors in the industry, including the US, Japan, South Korea, and Germany, made major contributions to the industry’s growth and technological improvement (Mexico’s Business News).

The Success of Automotive & Auto Parts Manufacturing in Tijuana

Tijuana’s strategic position and economic growth have been positively impacted by the auto parts manufacturing industry.

The city, which shares a border with California, has made a name for itself in the worldwide auto parts sector by taking advantage of its close proximity to the United States and favorable trade policies.

To give you a better example of the industry’s scale in the region, if you take a look at the Industrial Directory of Baja California, just in Tijuana alone, you’ll find 65 companies from the automotive and auto parts sectors. Among them are:

1. ⁠Toyota Motor Manufacturing
2. Hyundai
3. Prime Wheel

Toyota, for instance, began operations in the city in 2004 and is currently setting sales records with revenues over $120 billion dollars. On the other hand, Hyundai has been operating in Tijuana for about 30 years, and it currently has 6 locations in the city with over 9,000 employees.

The sector of manufacturing in Tijuana has cultivated a skilled workforce with technical expertise through a combination of local educational programs focused on engineering and technical skills and hands-on training offered by multinational corporations.

As a result, not only is it simple to locate manufacturers of a large variety of products—such as sheet metal, wire harnesses, car batteries, wheel rims, etc.—but assembly services for various components are also readily available. A notable example of this is the International Manufacturing & Assembly, which is also established in the city.

Baja California’s automotive industry was already experiencing annual growth of 4% to 5% in 2019 and previous years, as stated by Invest in Tijuana. 

Tijuana was considered one of the most important nearshoring markets in 2020; today, the city has become a consolidated metropolis for new international companies looking to establish their operations (Real Estate Market & Lifestyle).

Investing in Automotive & Auto Parts Manufacturing in Mexico

If your company is in pursuit of its future automotive or auto parts manufacturing headquarters, Tijuana offers plenty of advantages for businesses, such as:

1. Strategic location: access to one of the biggest consumer marketplaces in the world, lower transportation costs, and efficient supply chain management. 
2. Infrastructure: cutting-edge industrial parks, where you’ll find build-to-suit buildings, ideally situated in the city, with quick access to main roads that meet all U.S. standards.
3. Cost efficiency: businesses can save costs without sacrificing quality thanks to reduced labor costs.

At ATISA, our team is ready to help you capitalize on these benefits and ensure a smooth transition into a top-tier manufacturing facility in Tijuana.

Let’s write your next chapter of success!

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Sources:

The Tijuana EDC (2022) Ventajas de las empresas manufactureras en Baja California. Retrieved from: https://es.tijuanaedc.org/ventajas-de-las-empresas-manufactureras-en-baja-california.

Mexico Business News (2024) Mexico Attracts 815 Auto Parts Manufacturers by November 2023. Retrieved from: https://mexicobusiness.news/automotive/news/mexico-attracts-815-auto-parts-manufacturers-november-2023

Directorio Industria Maquiladora (s.f)

Real Estate Market & Lifestyle (2021) Monterrey, Tijuana y Querétaro, metrópolis consolidadas para nearshoring: CBRE. Retrieved from: https://realestatemarket.com.mx/noticias/mercado-inmobiliario/32992-monterrey-tijuana-y-queretaro-metropolis-consolidadas-para-nearshoring-cbre

ATISA (2023) Made in Tijuana: Why companies choose Tijuana for their manufacturing centers. Retrieved from: https://atisa.com/blog/made-in-tijuana-why-companies-choose-tijuana-for-their-manufacturing-centers/

Invest In Tijuana (2019) Mexico’s Automotive Industry And Tijuana as an Emerging Strategic Automotive Manufacturing Destination. Retrieved from: https://www.investintijuana.com/en/news/239/Mexicos-Automotive-Industry-and-Tijuana-as-an-emerging-strategic-automotive-manufacturing-destination

Pro Mexico Industry (2024) INA forecasts 3.1% expansion in Mexican Autoparts Production for 2024. Retrieved from: https://www.promexicoindustry.com/en/article/ina-forecasts-3-1-expansion-in-mexican-autoparts-production-for-2024.