GENERAL SITUATION IN MEXICO
Weekly Review I May 1, 2024
RELEVANT NEWS INDUSTRIES
AUTOMOTIVE
The Chinese automaker BYD has shown interest in building an electric car plant in Mexico, only for the Mexican market, they say. The northern neighbors do not believe the latter, since building the cars in Mexico would allow BYD to avoid paying the high import tariffs that apply to cars from China, compensating for the low cost of Chinese labor, in addition to the immediate proximity to the United States, not to mention the support that Chinese companies receive from their government to expand.
In the fourth quarter of 2023, BYD surpassed Tesla as the world’s largest seller of electric vehicles. Today, cars from Chinese brands have almost 10% of total sales in the domestic market, particularly with high-end and electric vehicles. Their advantage: cutting-edge technology and affordable prices.
SOURCE: MUNDO EJECUTIVO
With the very possible installation of car assembly plants of Chinese brands in Mexico, among which BYD and Chery stand out, the German company Bosch sees a great business opportunity with these companies.
Alexander Firsching, president of the company in the country, told MILENIO that some of them are already their customers from the Asian country, so it would be very natural for them to meet their needs.
SOURCE: MILENIO
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RELEVANT NEWS INDUSTRIES
MEDICAL DEVICES
In an effort to align local practices with international standards, the Federal Commission for Protection against Health Risks (Cofepris) has proposed NOM 262, a standard that establishes detailed criteria for the conduct of clinical trials in Mexico. This measure aims to homologate Mexican regulation with the standards of the International Conference on Harmonization of Technical Requirements for Registration of Pharmaceuticals for Human Use (ICH), of which Mexico has been a member since November 2021.
One of the most relevant aspects of this regulation for the medical device industry is the formalization of requirements for equipment and instruments used in clinical studies. According to the standard, all medical devices must be qualified and calibrated, with current calibration certificates and scheduled preventive maintenance. This ensures that the devices are not only safe for study participants, but also provide reliable data for research.
SOURCE: DISPOSITIVOSMEDICOS.ORG
SEMICONDUCTORS
Strengthening the North American market and sectorial programs for semiconductors, electromobility and medical devices is one of the priorities in the last stretch of the current Mexican government and before the revision of the Treaty between Mexico, the United States and Canada (USMCA), said Tuesday the Secretary of Economy, Raquel Buenrostro.
“We have to greatly strengthen (the) North American market, which has been integrated for many, many years, (now) we have a historic free trade agreement. Although the USMCA is new, our familiarity and the way we trade has been in place for many years.”
SOURCE: THE LOGISTICS WORLD
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RELEVANT NEWS BUSINESS
CHAMBERS
TIJUANA ECONOMIC DEVELOPMENT CORPORATION
Tijuana EDC hosted a delegation from the Singapore Economic Development Board (EDB), a government agency responsible for boosting Singapore’s global prominence as a business hub. The visit aimed to understand Mexico’s manufacturing ecosystem and explore the dynamic partnership between Mexico and the US. Tijuana showcased its industrial prowess by touring Foxconn and Carl Zeiss facilities, and highlighted its thriving IT & Software development sector at ITJ. The visit resulted in fruitful discussions and exchange of ideas, solidifying the bonds between Tijuana and Singapore in economic and technological spheres.
SOURCE: TIJUANA EDC’S LINKEDIN
AMCHAM
AMCHAM hosts North America Week on a national level. Held in 3 locations (CDMX, Monterrey and Guadalajara), 12 industries, more than 45 experts and 300 participants explore the nearshoring opportunity and deliver proposals to maximize its potential.
Day 1, held in Mexico City, was focused on energy, water and infrastructure. On Day 2, experts highlighted the strengths of the Northeast as a focus for nearshoring and the actions that can be taken to continue building strong value chains in the region. On Day 3 in Guadalajara, experts highlighted the region’s strengths as a potential technology hub, the region’s talent and business security strategies.
SOURCE: AMCHAM
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NEWS BY STATE
SONORA
With the purpose of consolidating Sinaloa, Sonora and Arizona into a single competitive and attractive region for investment, authorities from the Ministry of Economy of Sinaloa, the Consul General of the United States in Hermosillo, Matthew P. Roth, representatives from the Economic Development Offices of the cities of Phoenix and Arizona, in Arizona, United States, and businessmen from Sonora and Sinaloa met.
In this meeting, the state Secretary of Economy, Javier Gaxiola Coppel, emphasized the need to create an Industrial Corridor that not only takes advantage of the link between Sinaloa, Sonora and Arizona, but also promotes economic development and regional competitiveness.
SOURCE: EL ECONOMISTA
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NEWS BY STATE
NUEVO LEON
Nuevo Leon is one of the most competitive entities in the country, as it offers economic, social and infrastructure conditions that translate into large investments.
According to the Mexican Institute for Competitiveness (IMCO), the state is in the top three along with Mexico City (1) and Queretaro (2) in the investment category. It also has the third place in the Social Progress index, and the second in GDP per capita.
SOURCE: ABC NOTICIAS
TAMAULIPAS
The state of Tamaulipas has significant solar potential that is expected to be developed in the coming years. Proof of this are the projects currently underway in the region, concentrated in both the south and center of the state.
According to data provided by the Government of Tamaulipas, more than 50% of the territory has normal direct radiation reaching up to 7.3 kWh/m2 per day, while in the south of Tamaulipas this figure is 5.24 kWh/m2 per day.
SOURCE: EL SOL DE TAMPICO
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NEWS BY STATE
CHIHUAHUA
The automotive industry in Chihuahua continues to consolidate its position as one of the main automotive manufacturing hubs in the country. This sector represents 40% of the state’s manufacturing industry and generated an economic spillover of US$7.2 billion in 2022.
Of the total FDI received in the state, 92%, or 1,819.0 million dollars, corresponds to manufacturing, which concentrates sectors such as automotive, aerospace, electronics, metal-mechanics and medical devices. Companies in the automotive and auto parts sector rank 5th in attracting investment to the state.
SOURCE: ALTO NIVEL
COAHUILA
Mayor Jose Maria Fraustro Siller highlighted Saltillo’s potential to attract national and foreign investment, thanks to the city’s human capital.
“Today Saltillo has an average of 11.7 years of schooling among its workers, surpassing the national average and turning our city into a magnet for world-class companies, which means better employment and economic growth for everyone,” said Chema Fraustro.
SOURCE: VANGUARDIA
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NEWS BY STATE
SAN LUIS POTOSI
San Luis Potosi has maintained a sustained growth of its economy by registering 4.5 percentage points more than at the end of 2022.
In these results, positive variations were obtained in commerce, industry and services, according to information from the Quarterly Indicator of State Economic Activity (ITAEE) prepared by INEGI, which corresponds to October and December 2024.
SOURCE: SDP NOTICIAS
AGUASCALIENTES
Aguascalientes has consolidated its position as one of the most productive states in Mexico at the end of 2023, according to data from the Monthly Indicator of Industrial Activity by Federal Entity provided by INEGI.
In December, the state registered a 7.1% increase in its industrial production compared to the same period of the previous year, placing it as the sixth highest at the national level. This growth is remarkable, considering that the national average did not show significant variations in the same period.
SOURCE: HERALDO
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NEWS BY STATE
CDMX
Short-term rental platforms, including Airbnb, are now regulated in Mexico City since April 5th. This move was welcomed by the real estate sector for creating a level regulatory playing field. However, concerns remain about potential impacts on investment and tourism. Key aspects of the regulation include host and platform registries, a limit of six properties per host, and the establishment of tourist zones. Emilio Rojas Cobian of the AMPI emphasizes that these rules ensure tenant and investor security and promote fair competition while advocating for clear regulations across all sectors.
SOURCE: OBRAS
STATE OF MEXICO
The Ambassador of China in Mexico, Zhang Run, and his diplomatic team visited Toluca to strengthen cooperation. The mayor highlighted the meeting’s importance for enhancing ties, especially given Toluca’s status as the state’s economic center. He emphasized the support from the State Government for international investments, focusing on streamlining procedures and promoting projects for economic growth and innovation. Toluca’s infrastructure and logistical advantages were also underscored. The meeting involved various officials from both sides, highlighting the commitment to fostering relations.
SOURCE: EDOMEX AL DIA
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INVESTMENT NEWS
CENTRAL MEXICO
PRETTL
The plastics manufacturer announces an investment for a new production facility in Cadereyta de Montes, Queretaro. The project aims to create 1,000 jobs. No investment details shared.
ENGEL
The Austrian company announces the expansion of a new molding machine line, investing 64.1 million dollars in Queretaro. This will create 310 jobs.
CABLES & WIRES
The Austrian wires manufacturer announces its expansion in San Juan del Rio, Queretaro, investing 7.2 million dollars and creating 300 jobs.
MELECS
The Austrian manufacturer announced the expansion of its complex in Queretaro with an investment of 19 millions dollars and the creation of 60 new jobs.
PHOENIX CONTACT
The German wires manufacturer announced its arrival to Mexico with an investment of 64.1 millions dollars and the creation of 710 jobs in Queretaro.
SONA COMSTAR
The Indian automotive supplier opened its new plant in Silao, Guanajuato. No investment and jobs details shared
ZF GROUP
The German company is investing 12.9 million dollars in Queretaro to expand its operations, with the creation of 100 jobs expected.
SCHUNK
The company announces and investment of 7 million dollars to improve its engineering system, creating 250 jobs in Queretaro.
AUTOMANN
The American company will invest 50 million dollars in Villa de Reyes, San Luis Potosi, for a new distribution center for tractor-trailer parts. It is expected to create 120 jobs.
CSMET GROUP
The Chinese steel company announced an investment of 30 million dollars in San Luis Potosi and the creation of 177 jobs.
SOURCES: MEXICONOW, CLUSTER INDUSTRIAL
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