Analysis Of The Potential Of Mexico As A Platform For Chinese Passenger Vehicle Manufacturers Development In Foreign Markets

Thethesis studies how Mexico is a potential manufacturing location for Chinese passenger vehicle manufacturers.The study shows that Mexico has many factors that are perfect for an automotive company,which makes it attractive for investment.These factors are geographical location,free trade agreements,reduced taxes,cheap labor force and a steady growing economy.However,it also has big threats,mainly the high levels of corruption,organized crime and the cultural differences.This paper also analyzes the potential passenger vehicle market for a Chinese company when establishing in Mexico.Mexican local passenger vehicle market is the 15 th largest in the world,with a steady growth for the last years and an impressive 19% growth in 2015.Moreover,Mexico exports vehicles to more than 10 countries,exporting more than two times the units sold in the local Mexican market.As for the local market preferences,the local market likes subcompact cars with few equipment,priced under 10,000 USD;exactly the type of cars that many Chinese manufacturers already produce.The conclusion for this paper would be that Mexico has full potential as a manufacturing location and market,as long as the companies are aware of the threats and prevent them accordingly.