Mexico’s Auto Output Expected to Increase 38% in 3 Years image

Mexico plans to increase annual output by 1 million cars in the following three years, up 38% from 2011, as the country will be used by foreign automakers as an export base.

Automakers already announced their investments, which will help Mexico raise the annual production from 2.6 million units last year. Mexico, which is currently the 4th largest auto exporter, will see exports increase 15% by the end of this year to $400 billion from $350 billion in 2011, due to surging car and aerospace sales. Automakers already invested $5.3 billion for the January-April period and $2.8 billion in 2011.

Mexico’s Automobile Industry Association declared that sales from January to July have reached their highest levels. Several automakers such as Mazda, Nissan and Audi have announced their plans to build new plants in the country, which will help Mexico close the gap with Korea, considered the biggest exporter after Germany and Japan.

“Other companies are exploring the possibility of opening facilities in Mexico,” said Carlos Guzman, head of the nation’s investment promotion agency. “We expect a very good period of five to seven years in Mexico in terms of growing exports” for cars”, he said.