Industry Trend Analysis - Autos Investment Round-Up: China A New Source Of Investment For Mexico? - JUNE 2017
BMI View: The emergence of Chinese vehicle manufacturing in Mexico could mark the beginning of a new wave of Chinese investment focused more on exports to Latin America than NAFTA. In Brazil, producers are again showing their faith in the upcoming recovery in demand, this time in the heavy truck segment.
In BMI's regular round-up of production investments, we track the latest projects from the production side of the industry and analyse trends that we see developing on a regional basis. In doing so, we hope to build a picture of any potential hubs that may be developing, as well as company strategy in terms of production bases and export programmes.
During the first quarter of 2017, more than USD733mn worth of autos investment projects were announced publically in the Latin America region, representing a slowdown from the USD4.03bn worth of investments announced in the previous quarter. Of the announcements made in Q117, almost half were dedicated to projects in Brazil (USD376mn) with the remainder being dedicated to Mexico (USD348mn) and one project in Argentina (USD10mn). One project was also announced in Uruguay but no dollar value was provided.