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Opportunities and Agglomeration Forces in the Automotive and Auto Parts Industry in Mexico in the Presence of Chinese Companies

Year: 2025

Type: article

Abstract: Mexico has emerged as one of the world's leading producers and exporters of vehicles. With the entry into force of the USMCA, an increase in North American regional content in the automotive industry is expected, presenting an opportunity to boost technology transfer and the development of local capabilities. The automotive and auto parts industry (AAI) in Mexico exhibits spatial concentration patterns, generating agglomeration economies linked to knowledge spillovers, specialized labor, local inputs, and urbanization economies. However, few studies have analyzed these forces with a high level of territorial disaggregation, particularly regarding the presence of Chinese companies in the sector. This study examines the existence of agglomeration economies in the AAI across nine micro-regions in Mexico, home to 13 Chinese companies. Using kernel density maps and global and local autocorrelation indices, the analysis explores their local and regional impact. The findings provide evidence of agglomeration economies in five regions, with a trend toward further growth.

Source: RPER

DOI: 10.59072/rper.vi71.736

Authors: Jaime A. Prudencio-Vázquez, José Álvarez-García, María de la Cruz Del Río-Rama

Institutions: Universidad Autónoma Metropolitana, Universidad de Extremadura, Universidade de Vigo

Language: English

Topic: Regional Economics and Spatial Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: hybrid

Funders: European Commission, Junta de Extremadura, European Regional Development Fund