Auto Industry CRE Investments in Mexico Outpace Exports in Q1 2025

Over the past year, more than one hundred automotive companies bet on Mexico; 34 of them did so in the first quarter of 2025 alone. This wave of investment is not yet reflected in the sector’s exports, which started the year weak. But it opens a window: the recovery is moving faster than expected, and Mexico may be entering a new stage of industrial integration into the global supply chain.

Xiaona Hu leads Suzhou Shida Tongtai, a Chinese auto parts manufacturer. Photo: SiiLA.

By: SiiLA News

06/30/2025

Quietly, the engine turned back on. In just three months, Mexico attracted a third of all automotive companies that entered or expanded in the past year. It wasn’t by chance; it was a global reset that found its balance point here.

In total, 111 companies entered or expanded in Mexico between the first quarter of 2024 and 2025. Of those, 43 arrived for the first time and 68—equivalent to one in every eleven tenants in the sector—expanded their footprint. This movement led to a 6% increase in industrial space occupied by automotive firms.

Most newcomers (37%) are manufacturers of plastic and metal-mechanical components, including Shanghai Unison Aluminium and Suzhou Shida Tongtai. Another large segment (42%) includes electronics, battery, interior systems, and vehicle assembly firms. On average, these companies sought spaces larger than 11,000 square meters.

While 37% came from Mexico, the U.S., and Canada, the weight of Chinese firms—which alone account for one in every three entries—is undeniable. Europe also made its mark: 21% of newly arrived companies crossed the Atlantic, mainly from Germany.

Source: SiiLA Market Analytics, as of Q1 2025.

On the other hand, there are the companies that expanded. Leading the way (31%) were those focused on mechanical systems and engines, such as BorgWarner and ZF Group. They were followed by plastic and metal-mechanical firms (24%), and behind them were vehicle assemblers (13%) and electronics and interior companies (12% each). These expansions averaged more than 17,000 square meters.

A large share (35%) of the companies that have expanded in Mexico are Asian, mainly from China, South Korea, and Japan. North American (38%) and European (26%) firms followed.

Source: SiiLA Market Analytics, as of Q1 2025.

Despite this strong bet on Mexico, 2025 got off to a slow start. According to INEGI, automotive exports fell 3.9% in Q1 compared to the same period in 2024. It wasn’t a steep drop, but it served as a reminder: industrial expansion does not immediately translate into commercial momentum. However, the data reveal more than just a pause. Between January and March, exports grew 36%—a stronger boost than in the same period of 2024 (26%) and 2023 (21%).

What do these figures imply? That the start was weak, but the rebound was stronger. And if the monthly trend continues, the sector could end the year with more traction than many anticipated.

This upturn is not just the result of internal improvements, but of a global shift. As Asia becomes more expensive, Europe fragments, and the U.S. redefines its industrial policy, Mexico becomes the balancing point in a supply chain that now seeks not just efficiency but also proximity, certainty, and resilience. That window of opportunity won’t last forever—but it helps explain why, despite its limitations, the country has become indispensable.

Nevertheless, that centrality is fragile. Mexico is not reaping purely by merit but also by default. And that demands awareness. A single energy disruption, border closure, or outbreak of violence could unravel investor confidence. That’s why the challenge is no small one. Mexico has the chance to become the new automotive industrial axis of the Americas. However, if it doesn’t strengthen its infrastructure, energy grid, security, and talent pool, what now seems like a wave of investment could ultimately prove to be a broken promise.

For now, for every automotive company that leaves, four arrive or expand. It’s a ratio that doesn’t speak of euphoria—but of direction. And today, that direction still points to Mexico.

Want to know more about company performance in the industrial market? Visit SiiLA Market Analytics or write to us at contacto@siila.com.mx.

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