EMBAIXADORALFREDO PÉREZ BRAVO

MÉXICO

Jobs: + 90,000 OEMs

+ 895,000 Auto Parts

The automotive industry accounts for:

3.5 % of the total GDP

20% of the Manufacturing GDP

Exporter of light vehicles in the world

(61.1 billion units)

More than 600 Tier 1

suppliers have facilities in Mexico

Worldwide producer of vehicles(3.9 million units)

7o

3o

Source: ProMexico with information from AMIA, INA, OICA, Ministry of Economy, INEGI, Trade Map and IHS.

Value of more than $ 87 billion USD of auto

parts produced in Mexico

mexican automotive industryKEY INDICATORS (2017)

Mexico: Light vehicle production , 2008-2020(millions of units)

Mexico: Light vehicle production by company, 2016-2017(units)

Source: AMIA.

Mexico reached an historic level of production

with 3.9 million units in 2017.

According to forecasts, by 2020 productionwill reach 4.1 million units.

/f: forecast for the yearSource: AMIA (2008-2017), IHS (2017-2020).

Nissan Aguascalientes was ranked as one ofthe top producers in North America.

LIGHT VEHICLE IN MEXICO

70

3 0

30

45

9 1

16

41

4 6

85

39

0 5

28

25

3 9

88

14

9 2

35

13

9 4

27

10

7 5

00

63

8 6

53

46

1 2

48

31

5 4

55

20

8 8

57

14

1 7

74

15

1 0

62

22

1 5

00

2016 2017

82

9,2

62

84

8,0

88

80

5,7

58

1,5

2,32,5

2,9 2,9

3,23,4 3,5

3,94,1 4,1 4,1

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018/f 2019/f 2020/f

Source: AMIA

In 2017 the light vehicle exports reached itshighest level with 3.1 million units.

In 2017, Mexico was ranked as the 3th largest lightvehicle exporter in the world (units), and the third(US Dollar) largest in the world.

Mexico: light vehicle exports by company, 2016-2017 (units)

/f forecast for the yearSource: Source: AMIA (2009-2017), IHS (2017-2020)

AUTOMOTIVE INDUSTRY

53

9 5

12

50

0 3

88

44

3 2

85

37

6 8

83

33

3 9

40

20

5 6

28

14

0 4

56

13

5 0

66

93

10

7

69

3 7

82

46

8 8

63

59

9 4

90

30

7 3

78

38

6 1

22

18

7 1

77

14

7 9

33

14

8 1

30

16

3 7

29

2016 2017

1,2

1,9

2,1

2,4 2,4

2,62,8 2,8

3,1

3,38 3,34 3,37

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018/f 2019/f 2020/f

Mexico: Light vehicle exports, 2009-2020(milllions of units)

FDI RECEIVED BY MEXICO’S AUTOMOTIVE INDUSTRY

Source: ProMexico with information from the Ministry of Economics RNIE

Foreign Direct Investment registered in the automotiveand auto parts industries reached 6.8 billion dollars in2017.

Mexico: FDI received in the automotive industry, 2008-2017

(millions of dollars)

Source: ProMexico based on media information

Important automakers are expanding their production lines in Mexico.

FDI in Mexico by automaker, 2007-2017 (millions of dollars)

COMPANY 2007-11 2012 2013 2014 2015 Accumulated

Daimler Trucks 871 871

General Motors 4,910 420 691 5,000 11,021

Volkswagen 1,603 720 1,000 3,323

Ford 3,000 1,300 2,500 6,800

Fiat/Chrysler 550 1,264 1,814

Nissan 600 2,000 2,600

Honda 800 470 1,270

Mazda 500 120 100 720

Audi 1,300 1,300

BMW 1,000 1,000

Mercedes Benz-Infiniti

1,240 1,240

KIA Motors 1,000 1,000

Toyota 1,000 1,000

Total 12,834 5,020 3,265 8,340 4,500 35,559

35

0,1

63

5,4

90

4,6

56

8,6

1 1

63

,1

2 3

51

,6

2 4

70

,5

2 8

72

,6

2 2

28

,5

3 3

50

,2

1 2

77

,2

1 1

42

,7 1 7

69

,7

1 6

68

,3

1 9

13

,2

1 8

25

,3 2 8

88

,7

3 6

68

,8

2 8

66

,6

3 5

15

,4

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Assembly Industry

Autoparts

1.6 1.7

2.6

2.2

3.07

4.1

5.3

6.5

5.09

6.8

x2

x2Baja California

Sonora

Chihuahua

Coahuila

Nuevo León

San Luis Potosí

Aguascalientes

Jalisco

Guanajuato

Puebla

Morelos

Estado de México

LOCATION OF LIGHT VEHICLE MANUFACTURING PLANTS IN MEXICO

Crew cab

Journey

Fiat 500

RAM 1500

RAM 2500

RAM 3500

RAM 4000- RAM 4000 Diesel

Promaster

Aveo

Avalanche

Captiva Sport

Escalade

GMC Sierra

Silverado 1500- Silverado 2500- Silverado 3500

SRX

Sonic

Trax

Fusion

MKZ

Fiesta

Mazda 2

Mazda 3

Tacoma

CRV

Fit

March

Sentra

Tiida

Tsuru

Versa

Note

Frontier

NV 200 largo

Otros:Pick-up doble cabinaPick-up doble cabina dieselPick-up largoPick-up largo dieselChasis largoChasis largo dieselEstacas largo

LIGHT VEHICLES PRODUCED IN MEXICO

Forte

Río

Q5

Serie 3

Jetta-Jetta TDI

Nuevo Jetta- Nuevo Jetta TDI

Sportwagen

Jetta-Jetta TDI

Nuevo Jetta- Nuevo Jetta TDI

Sportwagen

Crew cab

Journey

Fiat 500

RAM 1500

RAM 2500

RAM 3500

RAM 4000- RAM 4000 Diesel

Promaster

Aveo

Avalanche

Captiva Sport

Escalade

GMC Sierra

Silverado 1500- Silverado 2500- Silverado 3500

SRX

Sonic

Trax

Fusion

MKZ

Fiesta

Mazda 2

Mazda 3

Tacoma

March

Sentra

Tiida

Tsuru

Versa

Note

Frontier

NV 200 largo

Otros:Pick-up doble cabinaPick-up doble cabina dieselPick-up largoPick-up largo dieselChasis largoChasis largo dieselEstacas largo

PrivatePublicAcademicMixed

LOCATION OF R&D CENTERS IN MEXICO

2. Heavy Vehicles Industry in Mexico

HEAVY VEHICLE PRODUCTION AND CONSUMPTION IN MEXICO

• Heavy vehicle production reached historic record in 2015.

• According to forecasts, by 2020 production will reach 270 thousand units.

• According to forecasts, heavy vehicleconsumption in Mexico will reach 48.3 thousandunits by 2020, an increase of 20% from 2015

Heavy vehicle production in Mexico 2009-2017 (thousands of units)

Source: INEGI and ANPACT

Heavy vehicle consumption in Mexico, 2009-2021 (thousands of units)

/f: forecast for the yearSource: INEGI and forecasts of the growth rate from Business Monitor International

2009 2010 2011 2012 2013 2014 2015 2016 2017 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018/f 2019/f 2020/f

57

87

133 138 137

169

191

151153

21,5

29,732,6

39,537,6 37,1

41,845,2 45,3 46,8 47,6 48,3

LOCATION OF HEAVY VEHICLE MANUFACTURING PLANTS IN MEXICO

Baja California

Coahuila

Nuevo León

Guanajuato

Querétaro

Estado de México

San Luis Potosí

Hidalgo

HEAVY VEHICLES PRODUCED IN MEXICO

Modelo Runner

Modelo Linner

Modelo Hustler

Modelo Brighter

Modelo 1018

Modelo 1524

Modelo 1724

Modelo ELF 600Modelo K440

Modelo 8300

Modelo 9700

Modelo M2

Modelo Cascadia

Modelo Culumbia

Modelo Torino

Modelo Boxer OF

Modelo Prostar

Modelo 9200

Modelo 4700

Modelo T370

Modelo T460

Modelo HD65

Modelo HD78

VolksBus 8.150 FEB

Volksbus 17.230

3. The automotive parts industry at international and national level

KEY INDICATORS FOR MEXICO – CAR PARTS (2017)Production value1

$87 billion USD

Exports1

$72,751 md

Imports1

$47,797 md

Mexico has more than 2,600 enterprises dedicated to the manufacture of auto parts allocated in 19 states3

Occupied workers2

895,000

Supplier of the United States.

1/3 of the total value of U.S. imports of auto partscomes from Mexico4

States with auto parts production

Auto Parts Producer1

Source: 1INA, 2INEGI, 3Ministry of Economy, 4The U.S. Department of Commerce.Note: Calculations made with IHS codes considered by the Ministry of Economy

37 634

41 822

47 044 50 107 51 273

72 751

MEXICAN PRODUCTION AND EXPORTS

In 2017, the auto parts industry kept itsdynamism, reaching a value of $87 billion dollars.

The United States was the main destination ofthe Mexican auto parts, representing nearly90% of the industry exports in 2017.

Canada, Brazil, China were the 2nd, 3rd, and4th destinations of the Mexican exports.

Mexico: Auto parts exports, 2012-2017 (millions dollars)

Source: INA

Mexico: Auto parts production, 2009-2021(billion dollars)

/f :forecastSource: INA with information of INEGI and IHS Markit

2012 2013 2014 2015 2016 2017

40

58

68 7

3

78

83

82

80

87 89 90 91 92

2009 2010 2011 2012 2013 2014 2015 2016 2017 f/2018 f/2019 f/2020 f/2021

35 360 36 433

40 656 41 460 39 192

47 797

MEXICAN AUTO PARTS IMPORTS

The United States is the leading country of origin of automotive parts imports to Mexico.

Mexican imports of automotive parts, 2012-2017 (millions of dollars)

Mexico: Automotive Parts Imports by Country of Origin, 2017(% share)

Source: INASource: INA

Partner Country %

United States 48.6%

China 14.1%

Japan 6.7%

Korea 6.6%

Germany 5.3%

Canada 3.6%

Others 15.1%

Total 100%2012 2013 2014 2015 2016 2017

AUTOMOTIVE PARTS TIER 1 PRODUCTION, LOCATION AND SPECIALIZATION

Northwest Region:

Plants: 70

Products/Systems: Air

conditioning and heating systems,

interior components, accessories and

electrical systems for automobiles.

Northeast Region:

Plants: 198

Products/Systems: Air

conditioning systems, automotive

systems, plastic parts, parts for

electrical systems, engine and

machined parts.

AUTOMOTIVE PARTS TIER 1 PRODUCTION, LOCATION AND SPECIALIZATION

Bajío Region:

Plants: 142

Products/Systems: Stamping,

electrical components, brakes and their

parts, rubber products, engine parts and

automobile transmissions.

Central Region:

Plants: 101

Products/Systems: Seats, air

conditioning systems, hydraulic bottle

jacks, interior components, engine

parts, electrical systems, stamping and

suspension.

MUITO OBRIGADO2018