Mexico's automotive sector has fully recovered from the 2008 downturn. The country has become the world's eighth-largest vehicle producer and is expected to surpass Brazil for the top spot in Latin America. In the automotive parts subsector, Mexico ranks fifth in the world, with local production of over USD 76 billion. The sector has become a net receiver of FDI and is now one of the most promising industries for Canadian investors because of its low costs, skilled labour and strategic location. Several important Canadian firms are already operating there, including Magna International, ABC Group, Woodbridge, MartinRea and Linamar.

Opportunities for parts manufacturers include engine and electrical components, gearboxes, drive axles, steering wheels, precision assembly devices, machined parts, hybrid vehicle parts and suspension systems. Also in demand are plastic parts, electronics and technologies for emission reduction. Diagnostic equipment and supplies for vehicle repair are widely needed as well.

Given the importing and production patterns of the Mexican automotive sector, the best opportunities for Canadian companies may lie in the stamping, foundry, forging, die casting and machining subsectors; in plastics; in carpets and trims; and in electronic assemblies and wiring.