News / Mexico has the drive to overtake Brazil as Latin America's top car manufacturer

© Khunaspix Dreamstime.

Mexico’s focus on free-trade agreements with large consumer markets is seeing it overtake Brazil as Latin America‘s largest car producer, according to research from IHS Automotive.

It said the two countries had followed markedly different policies in developing their car manufacturing industries, and Mexico’s offer of cheap labour, combined with low-tax policies and strong logistical infrastructure gained it a competitive edge over Brazil, despite it being one of the largest car markets in the world.

“Brazil has encouraged foreign direct investment through ...