A Unique Model in Mexico’s Automotive Industry
Guadalajara, Jalisco. Unlike other states in Mexico that rely on large automotive assembly plants and Tier 1 suppliers, Jalisco has adopted a distinctive approach by integrating micro, small, and medium-sized enterprises (SMEs) into its automotive supply chain. Carmen Hernández, the director of Jalisco’s Automotive Cluster, explained this unique model to El Economista.
Jalisco’s Role as the “Brain” of the Automotive Industry
Hernández Vidales described Jalisco as the “brain” of the automotive industry, combining software development, automotive electronics, innovation, and design with logistical advantages provided by its geographical location in western Mexico. She emphasized, “Today, Jalisco is the Silicon Valley of the automotive industry.”
Global Companies and Jalisco’s Tech Hub
This specialization has attracted global companies such as Continental (now Aumovio), Bosch, and Hella to establish engineering centers in Guadalajara. Jalisco has become a hub for automotive knowledge and technological development, hosting Tier 1, 2, and 3 suppliers.
Tier 2 and Tier 3 SMEs in Jalisco’s Automotive Supply Chain
Although Jalisco lacks vehicle assembly plants, it has strengthened a supply chain encompassing Tier 2 and Tier 3 suppliers, with a particular focus on the latter. Tier 2 and 3 suppliers, primarily SMEs, manufacture electronic components, plastics, fasteners, and various-sized parts that Tier 1 suppliers use to complete their primary components.
Additionally, Tier 3 and 4 suppliers focus on producing and transforming raw materials.
The Automotive Cluster of Jalisco
This ecosystem is facilitated by the Automotive Cluster of Jalisco, operating under a triple helix model that integrates businesses, state government, and academia through universities and technological institutes.
Hernández highlighted that the cluster’s primary focus is on supporting micro and small enterprises, stating, “Our attention isn’t on Tier 1 suppliers; they are important and influential, but our potential lies in micro and small businesses.”
Statistics and Impact on Jalisco’s Economy
According to the Instituto de Información Estadística y Geográfica del Estado de Jalisco (IIEJ), there are 130 automotive manufacturing units in Jalisco, with over 40% being micro and small enterprises. Of these, 30 companies are affiliated and active within the cluster, generating approximately 30,000 jobs.
Hernández emphasized that as a transversal industry impacting eight out of ten economic sectors, the automotive sector significantly contributes to Jalisco’s GDP, employment, and talent development.
Jalisco as a Favorable Environment for SMEs
In this context, Jalisco establishes itself as a conducive environment for SMEs from various sectors to join the automotive value chain, moving beyond the traditional model centered around large assemblers.
