During 2023, San Luis Potosí accumulated 1.658 billion dollars in automotive investments, thanks to its 10 projects, seven of which correspond to the electromobility sector, with BMW’s investment of 872 million dollars standing out.
San Luis Potosí, Mexico, February 6, 2024.- Directorio Automotriz, the automotive sector’s business link and intelligence platform, revealed data on investments in the mobility industry in Mexico with the publication of its whitepaper ‘Automotive Investment Report 4Q 2023’. This document gathers the most important results of Foreign Direct Investment and Nearshoring in the automotive industry during the fourth quarter of 2023, as well as a summary with investment results from January to December of that year.
Regarding the results of the fourth quarter of 2023 (October-December), Mexico accumulated $3,065.56 MDD in automotive investments, which indicates a drop of -33. 2% against the same period of 2022; in view of this, it is worth remembering that 4Q 2022 represented a record for that quarter in automotive investment, this, added to a small slowdown in the sector towards the end of the year explains the result, which is not bad, since, although the total amount is lower, the number of projects increased 12.9%, with a total of 70 in the fourth quarter of 2023.
INVESTMENTS FOCUSED ON THE AUTOMOTIVE GROWTH OF SAN LUIS POTOSÍ
The report also highlights that the Mexican states that registered the largest investments during the period from January to December 2023 were Nuevo León, with 43% of the national total (US$ 8,024.10 M), followed by Coahuila with 18% (US$ 3,418.25 M) and San Luis Potosí with 9% (US$ 1,658.3 M).
Comparison of states and their automakers 2023
In particular, San Luis Potosí consistently maintained its position in third place thanks to BMW’s US$872 million investment for its new electric vehicle assembly line and a high-voltage battery manufacturing plant, carried out in the first quarter of 2023.
During the same period, Steel Dynamics, the third largest steelmaker in the United States, acquired the land for the Ford plant for a total of US$103 million, which included the ownership of 280 hectares and the generation of up to 3,000 jobs for a new foundry plant.
In addition, in the second quarter of 2023, San Luis Potosí received an investment of 372.6 million dollars from the Chinese company Asiaway for die-casting processes (HPDC) and aluminum and zinc machining for auto parts.
During the same period, TAXAN Mexico, an electronic card manufacturer, began construction of its new facilities in the Millenium Industrial Park in San Luis Potosí, with an investment of US$40.6 million, with the goal of producing 500,000 items per month.
In the third quarter of 2023, San Luis Potosí received an important investment from Tier 1 BorgWarner, which allocated US$198 million to expand its production in Villa de Reyes, focusing on the manufacture of electric motors, power electronic components and electronic circuits.
SAN LUIS POTOSÍ WILL CONTINUE TO ATTRACT INVESTMENT IN 2024
San Luis Potosi’s participation in the automotive industry allowed the generation of 7,980 new jobs and an industrial construction area of 295.9 hectares in 2023, the same period in which 10 projects were completed in the state, 7 of which were focused on electromobility, which responds to the growing demand generated by BMW’s new production line.
Accumulated amount by state (2023)
Regarding electromobility, it is predicted that more companies related to electromobility will arrive to connect with the North American market and could be established in areas close to Nuevo Leon and Coahuila, such as San Luis Potosi, where there is a great opportunity to develop industrial spaces to house these companies.
In relation to this growth, Adrian Martinez, Content Area Leader of Cluster Industrial, expressed on September 8, 2023 during the webinar ‘Electromobility in Mexico: Current Data and Projections until 2024’: “There are auto parts that we are going to stop using and there is an important migration by manufacturers to move their business models to components related to electromobility, which are experiencing accelerated growth”. This underscores the need for transition and positions San Luis Potosí as a leader in electromobility in Mexico.
Source: Cluster Industrial