Querétaro’s Automotive Industry Slows Workforce Growth

Web Editor

October 20, 2025

a car is being assembled in a factory with robots working on it's parts and assembly line in the bac

Overview of the Automotive Cluster in Querétaro

Querétaro, Qro. Despite automotive-related companies in Querétaro anticipating workforce growth for the upcoming year, some have seen a decrease in their growth projections’ pace.

According to indicators from the Querétaro Automotive Cluster, as of July, member companies reported a 2.1% growth in their workforce compared to the previous year, explained Daniel Hernández Camacho, the cluster’s director.

They also predict a 2 to 3% increase in their workforce between July 2025 and July 2026.

However, these variations are lower than the average 7% growth projections reported in previous years, based on internal surveys conducted by the business organization.

Historical Context and Current Trends

“In the cut we made with our associates, we see a 2.1% growth in employment compared to last year, which is much less than our historical rate of 7%, as we had maintained an average of 7% over the past years. There were years with 8 or 8.5%, and even up to 9% growth, but the average of the last few years had been 7% growth,” shared Hernández Camacho.

In an interview, the cluster’s director highlighted that the 2.1% growth reported this year remains a positive indicator, given the recent labor declines in the sector.

“Within this positive scenario, at least there is growth, as the overall balance reflects that. We had some well-known cases (of companies reducing their workforce), but ultimately, the sector continues to maintain a growth pace, though not at the same speed we had previously seen,” he explained.

Future Projections

For the upcoming year, the cluster’s companies also anticipate maintaining the same growth line (2 to 3%), according to this year’s indicators.

“Based on the data we’ve received, we project a growth perspective along the same lines, with 2 to 3% growth, depending on the data provided. We measure 12 months ahead, so currently, we receive data up to July and ask them to project how they expect to be by next July (2026),” Hernández Camacho stated.

Impact of Michelin’s Plant Closure

Earlier this month, Michelin, a tire and components manufacturer, announced it would close its Querétaro plant by the end of the year, affecting the 480 employees at that operational center.

Regarding Michelin’s case, the cluster’s director mentioned that they coordinated with the state government to support the company.

The automotive parts industry in Querétaro generates around 83,000 jobs, estimated the cluster’s director.

Uncertainty in the Automotive Industry

This year, the global automotive sector faces various challenges due to uncertainty in trade policies affecting supply chains. Consequently, most car manufacturers report direct impacts on their hiring plans, according to analyses by ManpowerGroup consultancy.

In the study “Worldwide Labor Outlook in the Automotive Sector 2025,” ManpowerGroup reports that 91% of automotive employers cite trade uncertainty as affecting their future hiring plans.

Strategic workforce planning with a long-term perspective and retaining qualified talent are essential actions for automotive companies, according to the consultancy.