Over the past five years, Mexico has solidified its position as a strategic destination for nearshoring, particularly in key sectors such as the automotive industry. The reconfiguration of global supply chains, post-pandemic logistical challenges, and the need to establish operations closer to the U.S. market have triggered an unprecedented wave of foreign direct investment (FDI).
According to Mexico’s Ministry of Economy, in 2024, FDI in automobile and truck manufacturing increased by 36% year-over-year, reaching more than $6 billion USD in new investments for the sector.
What is nearshoring and why is it growing in Mexico?
Nearshoring is a strategy that involves relocating manufacturing or service processes to countries geographically closer to the target market — as opposed to traditional offshoring. This trend has accelerated due to several key factors:
- Rising labor costs in Asia
- Global logistics disruptions (COVID-19, trade tensions)
- The U.S.–China trade war
- Government incentives and trade agreements such as the USMCA
Thanks to its proximity to the United States, a network of 12 free trade agreements with 46 countries, and a skilled manufacturing workforce, Mexico has emerged as one of the most attractive destinations for foreign capital.
The National Council of the Maquiladora and Export Manufacturing Industry (INDEX) represents over 1,300 companies under the IMMEX export manufacturing program, underscoring the country’s strong manufacturing base.
Advantages and disadvantages of nearshoring in the automotive industry
Advantages:
- Reduced delivery times
- Lower logistics costs
- Improved quality control and traceability
- Access to specialized technical talent
- Compliance with USMCA rules of origin
Disadvantages:
- Saturation in certain industrial clusters
- Pressure on energy and logistics infrastructure
- Complex local permitting and regulatory processes
However, many of these challenges can be mitigated through experienced industrial partners and well-planned developments.
Foreign Investment and Automotive Nearshoring: The IDB Perspective
The Inter-American Development Bank (IDB) estimates that nearshoring could represent up to $78 billion USD annually for Latin America, with Mexico as the main beneficiary.
In the automotive sector alone, Mexico could attract more than $14 billion USD in new investment over the coming years.
Forecasts also suggest that nearshoring could boost Mexico’s GDP growth by up to 8% over six years. The Mexican Association of Private Industrial Parks (AMPIP) expects over 450 new foreign companies to enter Mexico between 2024 and 2025.
This momentum has been further reinforced by major investment announcements from global companies such as Tesla, BMW, and KIA, which have either launched or expanded operations in the country. These projects not only increase production capacity but also foster the integration of Tier 1 and Tier 2 suppliers within Mexico’s industrial ecosystem.
Key states driving automotive nearshoring: Nuevo León, Querétaro, and Guanajuato
These three states account for a large share of the current wave of automotive investments:
- Nuevo León: Continues to strengthen its position as Latin America’s leading industrial hub, attracting over $3.2 billion USD in investments and generating more than 13,000 direct jobs.
Companies like Volvo Trucks and KIA have expanded their operations here, adding projects in automation, advanced logistics, and high-value manufacturing that reinforce the state’s competitiveness.
According to Cluster Industrial’s Investment Report, Nuevo León led the country in capital attraction during early 2025, securing $785 million USD across six key projects — confirming its strategic role in Mexico’s automotive landscape. - Querétaro: A leading state in advanced manufacturing and automotive supply, with a complementary aerospace vocation. Countries such as Germany and Italy have invested more than 2.5 billion pesos in various projects, generating around 900 jobs for the state.
Querétaro continues to strengthen its position as one of Mexico’s main automotive hubs, with record-breaking figures that reflect its industrial dynamism. In 2024, the state achieved an auto parts production value exceeding $9.6 billion USD, the sale of 37,014 light vehicles, and the completion of 31 automotive investments with a total value of $931.4 million USD.
This growth trend continued into the first quarter of 2025, during which $85.3 million USD in new investments were attracted across eight strategic projects, generating over 900 direct jobs and more than 89,000 m² of built industrial space.
Companies such as EOI, Scania, Bridgestone, Yanfeng, Shape Corp., Mann Hummel, and Exo-s are leading this new wave of capital, strengthening the local automotive supply ecosystem and reaffirming Querétaro’s reputation as a benchmark in innovation, advanced manufacturing, and foreign investment attraction. - Guanajuato: The state reaffirms its leadership in Mexico’s automotive sector in 2025, with a strong performance in investment attraction and vehicle production. In the first quarter of the year, Guanajuato added 15 automotive projects, representing a combined investment of $48.1 million USD, the creation of over 1,100 direct jobs, and the development of 183,000 square meters of industrial infrastructure.
Companies such as Pasubio, DIMER, EGO, and OHTLI Logistics stand out for their impact in key areas such as advanced manufacturing, polymers, and specialized logistics. This expansion builds on a historic milestone achieved in 2024, when Guanajuato broke the national record for automotive production, assembling more than 896,000 light vehicles.
According to the State Ministry of Economy, projections for 2025 maintain Guanajuato as a national leader in automotive production, driven by trends such as electromobility, expanding exports, and strategic investments that continue to position the state as a cornerstone of Mexico’s automotive cluster.
These regions offer industrial infrastructure, strong connectivity, a skilled workforce, and solid government support — essential factors driving Mexico’s continued leadership in the automotive nearshoring era.
How VYNMSA supports the growth of the automotive industry with industrial parks
With over 31 years of experience and 26 industrial parks in operation, VYNMSA plays a key role in attracting and supporting new automotive investments across Mexico.
Our developments are located in strategic regions, including:
- Apodaca, Santa Catarina, and Escobedo (Nuevo León)
- Querétaro City and its industrial perimeter
- Celaya, Irapuato, and Silao (Guanajuato)
Each park offers:
- Class A infrastructure
- Medium and high-voltage power access
- Natural gas availability
- Speculative buildings and Build-to-Suit projects
- Security, fiber optics, and full connectivity
Automotive nearshoring: Opportunities for Tier 1 and Tier 2 Suppliers
The ripple effect of nearshoring is driving the arrival of Tier 1 suppliers (direct OEM partners) and Tier 2 suppliers (component and service providers).
These companies find in Mexico:
- Proximity to major assembly plants
- Competitive operational costs
- High-quality standards and certifications
- A robust logistical and fiscal support network
Automotive nearshoring is redefining the industrial future of Mexico. Leading OEMs and global suppliers are looking for more than just locations — they need world-class infrastructure, logistical connectivity, regulatory compliance, and a trusted strategic partner. At VYNMSA, we understand these demands and are ready to deliver solutions that meet the highest standards.
With over 31 years of experience, a presence in Mexico’s main automotive clusters, and an active portfolio of 26 industrial parks, we provide spaces designed to optimize your operations from day one. Whether you need a speculative building with immediate delivery or a Build-to-Suit project, our team supports you from design to delivery, ensuring sustainable and profitable growth.
Don’t leave your expansion to chance. Strengthen your supply chain, enhance your production times, and secure your global competitiveness with VYNMSA. Discover our developments, available locations, and turnkey solutions at: https://www.vynmsa.com