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BMW begins construction of manufacturing plant in Mexico

Mexico: Bayerische Motoren Werke AG or popularly known as BMW has started the construction of their new manufacturing plant in San Luis Potosi, Mexico. With production of company’s most selling model, the BMW 3 Series sedan, the new plant is expected to balance out the production of the BMW’s plant located in South Africa which will start making BMW X3 instead of 3 series when the plant is operational.

The new facility is scheduled to begin production from 2019 and is equipped with an annual production capacity of 150,000 units when fully operational, which will lead to generation of 1,500 new jobs in the region. The company’s decision to select San Luis Potosi as the location for building up this plant was owed to the strong supplier network followed by a well-qualified domestic workforce in the city along with friendly social and technical infrastructure.

"All of the BMW Group's knowledge and capabilities will be on show at our new location in Mexico. The production system being established there will be a leader in productivity and sustainability, thanks to the use of innovative technologies. I am delighted to launch this ground-breaking BMW Group plant on its way,” said Oliver Zipse, the member of board for production.

San Luis Potosi plant will include the complete operations comprising of body shop, paint shop and assembly equipped with an innovative production system maintain all the necessary sustainability standards which will make this facility most resource-efficient production location worldwide during the first year of its operation.

According to a recent report published by TechSci Research,Mexico Tire Market Forecast & Opportunities, 2021”, Mexico tire market is projected to grow at a CAGR of 10.6%, during 2016-2021. Expansion in production capacities of the OEMs coupled with rapid infrastructure development and increasing urbanization are the key factors attributable to the anticipated growth in Mexico tire market over next five years. In 2015, the country’s tire market was dominated by passenger car tire segment, followed by light commercial vehicle tire segment and heavy commercial vehicle tire segment. On account of increase in production and sales of passenger cars, the passenger car tire segment is expected to continue its dominance in the country’s tire market during the forecast period. Bridgestone, Michelin, Tornel and Continental are the leading tire players operating in the country.

As per TechSci Research, the decision to build a manufacturing plant in Mexico, by one of the top car manufacturer in the world is expected to drivee the demand for tires from the OEM market which is expected to drive the total market for tires in the country.        

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