Automation shifts industrial space demand in Mexico

Automation is reshaping the industrial landscape in Mexico, particularly within the automotive sector. While vehicle production volumes have remained relatively stable, there is a growing trend of producing more with fewer workers and larger physical footprints.

Data from INEGI shows that between January and July 2026, light and heavy vehicle production decreased by 0.9% compared to the same period in 2025. During this time, the average number of employees fell by 5.5% and hours worked declined by 4.4%. Conversely, SiiLA reports that industrial space occupied by automotive and auto parts companies increased by 3.5% across major markets in northern, central, and Bajío Mexico.

Between 2020 and 2025, the stock of industrial robots in the automotive industry rose by approximately 42%, increasing from roughly 30,800 to 43,900 units. This shift has led to an increase in robot density, rising from 384 to 565 robots per 10,000 workers. Consequently, the industrial space occupied per worker grew by 34%, rising from 15 square meters to over 20 square meters, indicating that increased automation does not necessarily reduce the demand for industrial real estate.