Shanghai-based Daimay Automotive inaugrated its fifth auto parts plant in the northern Mexican state of Coahuila, the largest producer of auto parts in the country, with an investment equivalent to $51 million, the local government reported.
"In (the city of) Ramos Arizpe, together with its mayor José María Morales and the company Daimay Automotive, we presented an investment of MXN 900 million ($51 million) with which 1,500 jobs will be generated," reported the governor of Coahuila, Manolo Jimenez Salinas.
According to Daimay's website, its main clients are General Motors, Ford, Chrysler, Volkswagen, PSA Group, Mitsubishi Fuso, among other producers. It is also a supplier to Chinese vehicle manufacturers such as SAIC, FAW, Dongfeng, Chery and Great Wall.
Data from the business chamber Industria Nacional de Autopartes (INA) place Coahuila as the largest auto parts economy in Mexico with a 15.8 percent share in the production value of $101.3 billion in the first 10 months of 2023. In second place is Guanajuato with 13.4 percent and Nuevo León with 11.7 percent.
That position of Coahuila will be reinforced, since Daimay, without providing details or dates, announced that it will build two more production plants.
Additionally, the company Yura Corporation, an auto parts producer with headquarters in South Korea, announced the expansion of its plant in the northern city of Torreón, Coahuila to produce auto parts with an investment of $35 million.
The city of Torreón is located 162 miles east of Ramos Arizpe, the city where one of the General Motors production plants is located, and 157 miles east of Saltillo, Coahuila, the city where the assembly company Stellantis has one of its plants. It is also 228 miles east of Pesquería, Nuevo León, the city where the Kia Motors production plant is located.
Coahuila is the seventh largest economy in Mexico by its contribution to the country's GDP, according to the Inegi System of National Accounts, reviewed by SteelOrbis.