Mexico registered a record $31 billion in foreign direct investment (FDI) in the first half of 2024, a 7% year-over-year increase, according to Mexico’s Ministry of Economy.
About $30 billion came from companies with an existing facility in Mexico, while new investments totaled more than $900 million.
“For the second consecutive year, we highlight the unprecedented amount of reinvestment of profits by companies in the country, due to economic stability, the good business environment and the competitive advantages offered, an ideal situation to expand and improve their production processes, becoming companies that attract new investments,” the ministry said in a news release.
Companies from the United States were Mexico’s top investors from January through June, accounting for 44% ($13.7 billion) of FDI. Other top investors in the first half of the year include Germany ($4.2 billion), Japan ($3 billion), Canada ($2.4 billion) and Belgium ($1.5 billion).
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In April, the Volvo Group announced it would construct a heavy-duty truck manufacturing plant in Mexico.
The plant, which will supplement the company’s U.S. production facility, will support the company’s growth plans for Volvo Trucks and Mack Trucks across North America, the company said.
On Friday, Volvo announced it had selected the Mexican city of Monterrey as the site of the new factory. The company plans to invest $700 million there, according to a news release.
Monterrey is about 140 miles south of Laredo, Texas.
“Monterrey provides significant logistical efficiencies for supporting sales to the southwestern and western regions of the U.S., and to Mexico and Latin America,” Volvo said in a statement. “With its proximity to the U.S. border and well-developed infrastructure, Volvo considers Monterrey an ideal location.”
Other automakers investing in Mexico during the first half of 2024 include Toyota, Honda, Mazda, Hyundai, Volkswagen, BMW, GM and Stellantis.
During the first half of 2024, the manufacturing sector accounted for 54% of FDI in Mexico. That includes companies in sectors such as food and beverages, tobacco, chemicals, computer equipment, metals, plastics, and rubber.
Notable manufacturers making investments include Anheuser-Busch InBev, Coca-Cola, Heineken, Nestle, LG and Bosch.
About 46% of foreign direct investment was concentrated in Mexico City, followed by the Mexican states of Nuevo Leon (7%), Baja California (6%) and the state of Mexico (5%).