Global PMX, an automotive component manufacturer, is strengthening investments in Mexico, despite cautious sentiment across the auto and ICT sectors since President-Elect Trump's first term sparked shifts in global trade policy. As demand for EV components grows, the Taiwanese company sees Mexico as a strategic hub for its global expansion.
Manufacturing advantages in Mexico
"Mexico offers proximity to key markets, lower labor costs, and favorable trade policies," said Global PMX. These factors, coupled with customer demands for non-China manufacturing, make Mexico an ideal choice.
Three decades of precision manufacturing
Over the past 30 years, Global PMX has built a competitive edge in precision metal processing, matching German Tier 1 suppliers in systems like steering, transmission, and safety. Now a direct supplier to top automakers, the company has scaled its revenue from NT$1 billion (US$31.2 million) to NT$8 billion (US$249.6 million), aiming for NT$10 billion (US$312 million) soon.
EV market dynamics
EV growth, especially since 2019, has driven changes within the automotive parts industry. While automakers had targeted ambitious electric goals, shifting market conditions and infrastructure concerns have prompted a recalibration. Global PMX's current orders reflect this trend, with 15% of orders for fully electric vehicles and stronger demand for hybrids—which are gaining traction amid pricing pressures in the used car market.
Strong third quarter performance
In the third quarter of 2024, Global PMX reported NT$2.216 billion (US$69.1 million) in consolidated revenue, marking a 22.86% increase compared to the same period last year. Its medical division also saw a surge, with a 91.47% increase compared to the previous quarter as inventory cleared and new products ramped up. Meanwhile, the electronics segment benefitted from high-capacity HDD demand, driven by AI cloud storage, helping balance the typical automotive summer slowdown.
Global PMX, an automotive component manufacturer, is accelerating investments in Mexico, despite cautious sentiment across the auto and ICT sectors since Donald Trump's presidency sparked shifts in global trade policy. As demand for EV components grows, the Taiwan-based company sees Mexico as a strategic hub for its global expansion.
"Mexico offers proximity to key markets, lower labor costs, and favorable trade policies," according to Global PMX. These factors, coupled with customer demands for non-China manufacturing, make Mexico a prime choice.
Over the past 30 years, Global PMX has built a competitive edge in precision metal processing, catching up with German Tier 1 suppliers in systems like steering, transmission, and safety. Now a direct supplier to top automakers, the company has scaled its revenue from NT$1 billion to NT$8 billion, aiming for NT$10 billion soon.
EV growth, especially since 2019, has driven changes within the automotive parts industry. While automakers had targeted ambitious electric goals, shifting market conditions and infrastructure concerns have prompted a recalibration. Global PMX's current orders reflect this trend, with 15% of orders for fully electric vehicles and stronger demand for hybrids—a model gaining traction amid pricing pressures in the used car market.
