GENERAL SITUATION IN MEXICO
Weekly Review I January 29, 2025
US - MEXICO PRESIDENTIAL NEWS
MEXICO’S TAX INCENTIVES DECREE UNDER THE MEXICO PLAN
Objective:
Encourage business investment in Mexico through tax incentives, supporting both the acquisition of fixed assets and employee training and innovation.
Projections and Expected Impact:
• A total of 30 billion pesos will be allocated for two types of tax incentives:
• 28.5 billion pesos for accelerated deductions on the purchase of new fixed assets.
• 1.5 billion pesos for additional deductions on employee training and innovation expenses.
• These incentives will be available from January 2025 to September 2030.
Tax Incentives:
• Accelerated deductions for investments in new fixed assets.
• Additional deductions for employee training and technology innovation activities.
Financing and Support for Businesses:
• Tax incentives aimed at supporting both large corporations and small and medium-sized enterprises in their growth and workforce development.
Key Dates:
•The fiscal incentives will be in effect from January 22, 2025 to September 30, 2030.
SOURCE: EL ECONOMISTA
US - MEXICO PRESIDENTIAL NEWS
MEXICO RECEIVES DEPORTEES DURING TRUMP’S FIRST WEEK IN OFFICE
Sheinbaum’s Statement:
Report on the immediate effects of Donald Trump’s first week in office on migration flows, particularly deportations to Mexico, while addressing diplomatic tensions surrounding migration policy.
Expected Impact:
• Mexico received 4,094 deported individuals during the first week of Trump’s presidency, but Sheinbaum emphasized that there had been no significant increase in repatriations compared to previous periods.
• The pressure on the U.S.-Mexico border remains high due to Trump’s aggressive stance on immigration, which includes threats of mass deportations and raids.
Key Remarks and Diplomatic Developments:
• Sheinbaum noted that, despite the tough rhetoric from Trump on migration, the number of deportations did not show a substantial rise.
• She expressed relief that Trump and Colombia’s President Gustavo Petro reached an agreement, easing tensions that had flared over migration-related policies.
Regional Political Context:
• Sheinbaum confirmed her participation in the upcoming CELAC summit, despite the ongoing tensions, signaling Mexico’s commitment to regional dialogue and unity.
• The CELAC summit scheduled for Thursday will take place amid heightened diplomatic tensions between the U.S. and Latin American nations, particularly Colombia and Mexico.
SOURCE: EL PAIS
US - MEXICO PRESIDENTIAL NEWS
CLAUDIA SHEINBAUM REAFFIRMS COMMITMENT TO DEFEND MEXICO’S SOVEREIGNTY
Mexican President Claudia Sheinbaum emphasized her commitment to defending Mexico’s sovereignty, independence, and the well-being of Mexicans living in the United States.
Sheinbaum’s comments on Trump’s migration policies:
• She addressed the reimplementation of policies, including Donald Trump’s executive orders on border emergencies and the Migrant Protection Protocols (MPP), stressing Mexico’s humanitarian approach to migration and its rejection of being labeled a “safe third country.“
• She reaffirmed Mexico’s stance on coordinating with the U.S. while maintaining sovereignty and promoting bilateral dialogue on key issues like migration and trade, including the upcoming review of the USMCA (T-MEC) agreement in 2026.
Mexico’s actions on migration:
• As part of the “México te abraza” repatriation strategy, nine migrant support centers will be established in border states to provide services such as health care, documentation, shelter, and transportation.
• The initiative involves 34 federal agencies and a vast consular network in the U.S. to support returning or deported Mexicans.
• Sheinbaum reassured migrants that they are not alone, highlighting efforts to reintegrate them into their communities and ensure their legal and social needs are met.
SOURCE: GOVERNMENT OF MEXICO
TRUMP’S REMARKS AT DAVOS: SEEKS FAIR TREATMENT IN U.S.-MEXICO RELATIONS
Trump emphasized his desire for fair treatment in international relations, particularly with Mexico, regarding issues such as migration and drug trafficking.
• Trump stated that significant progress has been made in addressing key concerns with Mexico, particularly migration and drug trafficking.
• Trump’s call for “fair treatment” could indicate future discussions or tensions around trade agreements and tariffs, especially with Mexico.
Key Remarks on U.S.-Mexico Relations:
• Trump expressed satisfaction with the ongoing discussions with Mexico, highlighting that the U.S. seeks to be treated fairly in its relationships with other countries.
• Migration and Drug Traffickin remain central in U.S.-Mexico discussions, with Trump signaling that cooperation continues on these fronts.
Mexican Response:
• Claudia Sheinbaum reiterated Mexico’s commitment to diplomatic solutions but also warned that Mexico would apply mirror measures if the U.S. imposes unilateral tariffs on Mexican imports.
• While Sheinbaum acknowledged the need for collaboration, she emphasized Mexico’s interest in finding mutually beneficial agreements, particularly regarding migration and trade.
SOURCE: EL ECONOMISTA
RELEVANT NEWS INDUSTRIES
AUTOMOTIVE
U.S. automaker General Motors (GM) may shift part of its production from Mexico and Canada to the United States in response to a potential 25% tariff imposed by President Donald Trump. GM’s CEO, Mary Barra, revealed this during the 2024 financial results presentation, stating that the company is evaluating the impact on the automotive industry. Barra noted that GM has available production capacity in the U.S. to take on some of the manufacturing currently done in Mexico and Canada. She also mentioned that GM sells trucks globally and could consider the origin of international markets.
However, Mexico’s Economy Secretary, Marcelo Ebrard, denied that GM plans to leave the country, emphasizing that the company would instead make adjustments. He pointed out that GM’s most productive plants are in Mexico, and it would be too costly to move operations elsewhere.
GM is the second-largest automaker in Mexico, holding a 13.7% market share in 2024. The company has been operating in Mexico for over 89 years, employing more than 25,000 people across four manufacturing sites and other facilities. GM exports models like the Equinox SUV, GMC Sierra, and Silverado from Mexico and has a network of 330 distributors in the country.
SOURCE: MEXICO INDUSTRY
Covestro has formed a partnership with GOVY Technology Co, a subsidiary of Guangzhou Automobile Group (GAC), to advance materials for electric vertical takeoff and landing (eVTOL) aircraft, a key component of urban air mobility. The collaboration aims to develop innovative, lightweight materials such as polycarbonate glazing, smart lighting systems, and high-performance components to enhance the safety, efficiency, and sustainability of flying cars. The initiative will leverage Covestro’s expertise in sustainable materials and GAC’s leadership in eVTOL aircraft development to redefine urban transportation, addressing issues like congestion and pollution.
This strategic alliance comes at a time when China is making significant strides in eVTOL development, using its battery technology advancements to integrate these aircraft into urban transportation systems. The partnership will focus on using low-carbon, recycled, and sustainable materials to reduce emissions throughout the vehicle’s lifecycle. A demonstration model of the eVTOL, capable of traveling 200 kilometers in 40 minutes, was showcased during the signing ceremony. The first orders for these flying cars are expected to be placed in 2025, marking a new era in personal and urban transportation.
NEWS BY STATE
BAJA CALIFORNIA
The manufacturing industry in Baja California is looking to facilitate the hiring of deported Mexicans and migrants by helping them obtain necessary documentation, according to Federico Serrano Bañuelos, president of Index Zona Costa. Given the industry’s labor shortage of 10,000 workers, deportees and migrants could fill these vacancies. Serrano Bañuelos emphasized that while integration won’t happen overnight, they will support individuals in obtaining essential documents like birth certificates, INE credentials, and CURP. He also noted that past collaborations with the National Institute of Migration (INM) and financial institutions have helped migrants secure special permits, ensuring they meet legal requirements to join the workforce.
SOURCE: EL SOL DE TIJUANA
SONORA
With tax incentives, Governor Durazo promotes the establishment of new industries in coordination with business leaders. On January 27, 2025, Governor Alfonso Durazo Montaño led a session of the Sonora Business Participation Council (COPES), where he agreed with local business representatives to continue leveraging the state’s competitive advantages to attract new investments. Sonora offers tax incentives to companies that establish operations in its municipalities, encouraging job creation and economic growth. Durazo emphasized that these incentives, including tax reductions and exemptions, are designed to support investment, productivity policies, and employment generation. He also highlighted strategic projects, such as the Olinia automobile manufacturing plant, which will strengthen Sonora as a hub for sustainable development. The governor called on the business sector to maintain close collaboration with the state government to foster further industrial growth and improve opportunities for Sonoran families.
SOURCE: GOVERNMENT OF SONORA
NEWS BY STATE
NUEVO LEON
Thor Urbana, a leading real estate developer in Mexico, has announced the creation of TU Park Apodaca I, a new industrial park in Apodaca featuring three warehouses and a total gross leasable area (GLA) of 450,000 square feet. The project will be developed in phases, with deliveries scheduled for the second and fourth quarters of 2025. This initiative aligns with Thor Urbana’s strategy to strengthen its presence in Mexico’s industrial market, leveraging trends such as nearshoring and increasing foreign direct investment (FDI), which reached a record $35.7 billion by Q3 2024, with 54% directed toward manufacturing. TU Park Apodaca I aims to meet the rising demand for industrial spaces in a key manufacturing and logistics region. As part of a broader expansion, Thor Urbana has now acquired over 3.6 million square feet of industrial space in Mexico’s Bajío and northern regions, reinforcing its position as a major real estate player while ensuring high returns for investors.
SOURCE: MEXICO INDUSTRY
NEWS BY STATE
QUERETARO
Industrial companies in Querétaro closed 2024 with growth and expect to maintain this trend in 2025, according to Alfredo Sahagún Sánchez, president of Canacintra Querétaro. Despite potential challenges, he is optimistic about continued economic expansion, driven by investments in key industries like automotive, aerospace, metalworking, and artificial intelligence. A major boost comes from Amazon Web Services’ $5 billion investment in a data center region, with further related projects expected. While some industries anticipate difficulties due to the U.S. government transition, Sahagún remains confident in Querétaro’s steady growth, supported by Mexico’s national economic strategy. The state ended 2024 with 707,151 registered jobs, with 34.6% in the manufacturing sector, solidifying its role as a major employer.
SOURCE: EL ECONOMISTA
GUANAJUATO
Japan remains the leading trade partner of Guanajuato, with 145 investment projects exceeding $8.9 billion and generating over 48,140 direct jobs. The state has become a key destination for major Japanese companies, hosting automakers such as Toyota, Mazda, and Honda, along with a strong network of Tier 1 auto parts suppliers, including Yusei Holdings, NKP, Mitsui High-tec, Minebea Mitsumi, and Suminoe Textile. According to Economy Secretary Claudia Cristina Villaseñor Aguilar, this synergy between investment, employment, and culture ensures a promising future for Guanajuato. These investments are spread across multiple municipalities, fostering regional growth and strengthening local supply chains, creating new opportunities for small and medium-sized enterprises (SMEs) and diversifying the state’s industrial base.
SOURCE: MEXICO INDUSTRY
NEWS BY STATE
CDMX
The newly implemented “Ventanilla Única Inmobiliaria” in Mexico City aims to streamline approval processes for real estate projects, reducing authorization times from 18-24 months to just six months. This initiative, led by Canadevi Valle de México, seeks to attract investment and address housing shortages by unifying legal and environmental requirements into a single process. Developers plan to invest 7 billion pesos in constructing 7,000 affordable housing units in the coming months, with an additional 25 projects for 1,500 homes awaiting approval. The reforms also foster collaboration with Infonavit to support local builders in achieving a national housing target of 1 million units. Leopoldo Hirschhorn, Canadevi president, highlights increased legal certainty under new city authorities, creating opportunities for growth in the housing sector after years of stagnation.
SOURCES: EL ECONOMISTA
NEWS BY STATE
STATE OF MEXICO
The State of Mexico (Edomex) expects significant national and foreign investments in 2025, particularly in the automotive sector, including electric vehicle manufacturing. Laura González Hernández, head of the State’s Economic Development Secretariat (Sedeco), highlighted plans for industrial park infrastructure improvements and collaboration within the AIFA economic corridor, which includes Mexico City, Edomex, and Hidalgo. Sectors attracting investment include electromobility, manufacturing, energy, real estate, food, textiles, pharmaceuticals, and services. Sedeco is engaging global companies to align projects with Mexico’s federal strategy and North American trends. Edomex ranked first nationally in foreign direct investment (FDI) as of Q3 2024, with $1 billion recorded, and second cumulatively with $2.6 billion. Upcoming projects and actions under the “Plan México” will be announced throughout the year by Governor Delfina Gómez Álvarez.
SOURCE: EL SOL DE MÉXICO
In 2024, Chinese automaker GAC strengthened its position in Mexico’s automotive market by opening 43 dealerships nationwide and a new Auto Parts Distribution Center in Teoloyucan, Edomex. Each dealership offers sales and high-quality service workshops, enhancing customer satisfaction and accessibility. The 3,000 m² distribution center can store up to 100,000 parts and features AI-driven logistics for fast, efficient deliveries within 72 hours. Globally, GAC sold 2 million vehicles in 2024 and received JD Power’s quality excellence award for the eighth consecutive year.
SOURCE: MEXICO INDUSTRY
INVESTMENT NEWS
VOLVO GROUP
Volvo Group has partnered with Escala and Grupo Garza Ponce to build its new plant in Ciénega de Flores, Nuevo León, with an investment of $700 million. This facility will be the largest in the world for Volvo Group and Mack Trucks, covering 195,000 square meters on a 120-hectare site, including a 94-hectare production plant and a 26-hectare Pocket Park. The project, managed by Escala and Grupo Garza Ponce, is expected to be completed by mid-2026. The plant will produce and assemble Volvo semi-trucks and manufacture and paint Volvo and Mack heavy truck cabins, generating 2,500 direct and up to 5,000 indirect jobs. Launched with a groundbreaking ceremony on October 15, 2024, this project strengthens Nuevo León’s position as a key automotive hub in Latin America. The plant will supply markets in the U.S., Canada, Mexico, and Latin America. Volvo Group, headquartered in Gothenburg, Sweden, specializes in trucks, buses, and construction equipment, while Escala, a Mexican firm founded in 1990, focuses on construction and project management.
DIMER
DIMER, a manufacturer of products based on resins, announced the establishment of its second production plant in the municipality of Celaya, Guanajuato, with an initial investment of 15 million dollars and the creation of 200 direct jobs in its final stage. The plant will be located in the El Marqués Bajío Industrial Park.
MEDLINE INDUSTRIES
Medline Group announced a $250 million investment in a new plant located in Nuevo Laredo, Tamaulipas. Marcelo Ebrard, the Secretary of the Economy, and Yogesh Wadhera, the general manager of Medline Group, jointly shared the details of this new facility. The investment reflects Medline’s commitment to expanding its operations and contributing to the local economy, marking a significant step in strengthening the medical supplies industry in Mexico.
SOURCE: CLUSTER INDUSTRIAL
PRODENSA INSIGHTS
YOU KNOW NEARSHORING, BUT WHAT ABOUT TECH-SHORING?
The nearshoring movement is transforming global manufacturing, but there’s a new phenomenon on the rise—tech-shoring. As Mexico positions itself as a powerhouse for IT talent and innovation, companies are seizing the opportunity to relocate tech operations closer to home.
In this edition, we break down the Mexshorings—four key trends reshaping the industry—and explore how tech-shoring is driving a new wave of investment in software development, e-commerce, and Big Data.
With strong technology clusters and cross-border collaboration through initiatives like Long100, the Mexico-Texas region is emerging as a premier hub for scalable, cost-efficient tech growth.
Key Takeaways:
• Nearshoring isn’t just about manufacturing—it’s evolving into tech-shoring.
• Mexico offers affordable, high-skilled IT talent and strategic proximity.
• Workforce planning is critical—learn how labor feasibility analysis can optimize your strategy.
PRODENSA INSIGHTS
HAPPY CHINESE NEW YEAR 2025
Chinese New Year—the most significant celebration across China and many Asian nations—was recently recognized as part of humanity’s Intangible Cultural Heritage. With over 1.5 billion people celebrating worldwide, this festival blends ancient traditions, legends, and modern innovations.
In this edition, we explore:
• The legend of the Nian monster and how firecrackers, red lanterns, and dragon dances became symbols of good fortune.
• The meaning behind red envelopes (Hongbao) and why the number 8 is considered lucky.
• The Year of the Snake (2025)—what personality traits it represents and what it means for the new year.
• The rise of digital red envelopes and tech-driven celebrations, from WeChat payments to the globally-watched CCTV New Year’s Gala.
• As tradition meets technology, Chinese New Year continues to evolve while honoring its deep cultural roots.
