Chinese tire manufacturer ZC Rubber will invest 10,095 million pesos (approximately 600 million dollars) to establish a factory in Coahuila. This investment comes two weeks after the Japanese tire company Yokohama Rubber Company started constructing a 60,000-square-meter plant in Derramadero, Coahuila, with an investment of 7,000 million pesos (about 415 million dollars).

The recent strategic investments by Asian companies in Coahuila, as part of Governor Manolo Jimenez Salinas' tour of China and Japan, are aimed at forging trade agreements that attract foreign investment to the region. These investments, heralded as the beginning of future initiatives, demonstrate the growing interest of automotive companies in developing and expanding their operations in Coahuila, including Monclova, where an investment of at least 40 million pesos (approximately two million dollars) is anticipated.

The vehicle and parts sector, bolstered by these investments, plays a pivotal role in both the economy and the industrial infrastructure of Coahuila. According to SiiLA, 53% of the Gross Leasable Area (GLA) of Saltillo –the state's leading industrial market– is occupied by automotive companies, and according to the Mexican Economy Secretariat (SE), about 26% of this region's international sales depend on the automotive sector, a testament to the sector's robustness and potential for growth.

In this context, companies from Asia are fundamental to economic development. The SE estimates that approximately 8% of Coahuila's foreign direct investment (FDI) comes from countries on this continent. Conversely, data from SiiLA Market Analytics indicate that East and Southeast Asian companies occupy 12% of Saltillo's industrial GLA.

The Asian Automotive Industry in Saltillo

Asian companies occupy about 840,000 square meters of GLA in Saltillo's industrial market. 53% of this area belongs to vehicle and parts companies, and an additional 27% corresponds to capital goods companies, particularly machinery, an economic pillar in the region.

Within the automotive sector, a diverse range of companies from China, Korea, Japan, and India are making their mark in Saltillo. Companies from China dominate, occupying about 270,000 square meters, equivalent to 54% of the automotive GLA in Saltillo. These companies are followed by Korean firms, with just over 200,000 square meters equivalent to 41% of the sector. The remainder (5%) corresponds to Japanese and Indian companies that occupy almost 26,000 square meters, showcasing the global reach and influence of the automotive sector in Saltillo.

Three tenants concentrate 48% of the automotive GLA: Chinese companies Yanfeng Automotive Interiors (23%) and Shanghai Daimay Automotive Interior (18%), in addition to the Korean Hwaseung Group (7%).

Over the last year, Asian companies absorbed nearly 117,000 square meters in Saltillo, representing 14% of the GLA absorbed from the first quarter of 2023 to the same period in 2024. Among the most recent investments are those by the Korean company LG Magna e-Powertrain and the Indian firm Imperial Auto in Ramos Arizpe, which occupied Class A industrial buildings of 9,500 and 4,200 square meters, respectively.

For more information on this and other investment topics and Mexico's commercial real estate market, explore SiiLA REsource or contact us at contacto@siila.com.mx.