100 thousand m² of construction in Saltillo, automotive industry continues to project the market
Solili | August 03, 2022 |

Saltillo has positioned itself within the markets in the north of the country with a significant increase in its gross and net demand, which have grown by 40% and 5%, respectively, at the end of 2Q 2022, compared to the same period in 2021.

Gross demand has been the engine that drives construction in Saltillo, which at the end of the second quarter of the year reached 213 thousand square meters. The composition of the constructions that are built leans towards custom-made projects that dominate 68% of the industrial works in process, leaving the rest to speculative projects that focus on few options with average sizes between 12 and 18 thousand meters squares.

Examples abound in the press headlines that cover investments in Coahuila associated with the automotive sector, such as the cases of Posco, Aptiv and John Deere, to name a few, which find in the entity the presence of qualified and highly competitive labor, as well as as the climate and labor peace guaranteed to operate.

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Posco, the South Korean steel company that manufactures and supplies galvanized steel sheets, will start building a new plant focused on producing traction motor cores for electric vehicles. The investment for 43 million dollars (mdd) is expected to be completed by mid-2023, as part of the global investment plan that totals 136 million dollars estimated until 2030.

Likewise, the Irish company Aptiv will increase its presence in Coahuila, with the opening of a new plant in this market that seeks to produce harnesses for the automotive industry, projecting an investment of 14.7 million dollars.

The American company John Deere & Co., which manufactures agricultural machinery, recently announced that it will move its production of tractor cabins from Waterloo, Iowa, to Mexico.

Regarding expansions, Yanfeng continues with its commitment in Coahuila by going for its fifth factory with an investment project of 17 million dollars for the construction of a new plant in the Davisa Santa María de Ramos Arizpe Industrial Park, with an extension of 19.5 thousand meters squares.

The Japanese company Fujikura and LG-Magna e-Powertrain also add to the industrial real estate investment in this market. Fujikura, dedicated to the manufacture and development of energy and telecommunications product systems for the automotive industry, announced a double investment this year for the opening of two plants in Coahuila.

Check here: Hisun inaugurates its plant in Saltillo with an investment of 105 million dollars

For its part, LG Magna e-Powertrain will invest 300 million dollars in a new plant that will be located in the Santa María Industrial Park where they will produce motor inverters and integrated chargers for the production of electric vehicles for General Motors.

Let us remember that at the end of 2021, Mexico manages to position itself in fourth place worldwide as an auto parts producer, displacing Germany, as indicated by the Chamber of the Auto Parts Industry (INA).

The production of vehicles in Mexico exceeded 2 million two hundred and seventy-nine thousand vehicles at the end of 2021 and Coahuila was the state with the highest amount of investment at the end of the year with 1,768 million dollars, which represents 41.4% of the national total, according to It was indicated by the business intelligence platform Directory Automotive.

The entry into force of the T-MEC, and the aftermath of Covid have favored the industry now having to manufacture more auto parts due to the Regional Content Value, thus underpinning the growth of the automotive production sector in Mexico, which we will see in the remainder of the 2022 where Coahuila has a prominent role at the national level.

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