Automobile Engine & Parts Manufacturing in Mexico - Industry Market Research Report

Putting on the brakes: Revenue growth is expected to stall due to slower global auto demand

Automobile Engine & Parts Manufacturing in Mexico
The Automobile Engine & Parts Manufacturing industry has exhibited strong growth over the five years to 2019. Strong demand from US markets and the expanded operations of foreign-based automakers have aided industry revenue during the period. US automakers have increasingly turned to Mexico to source intermediate goods in the auto production process due to inexpensive labor in the country. Furthermore, increased light vehicle sales in Mexico have helped boost demand for Mexican vehicle production and thus benefited industry revenue. The Automobile Engine & Parts Manufacturing industry is expected to exhibit stalled growth over the five years to 2024, due to slower global auto demand and decelerating domestic auto sales. Furthermore, principles decided in the recent United States-Mexico-Canada Agreement could potentially weaken Mexico's advantage of inexpensive labor moving forward. These policies may discourage potential future investment from foreign-based automakers. This industry in Mexico comprises establishments primarily engaged in manufacturing and rebuilding motor vehicle gasoline engines and hybrid and alternative fuel engines for automobiles, trucks and pickup trucks. Establishments also produce engine parts such as crankshaft assemblies, valves, pistons and piston rings. This industry excludes establishments that primarily manufacture diesel engines for motor vehicles and rectify motor vehicle engine parts at a client’s request. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.