Picture by Marcin Jozwiak for Unsplash
August 26, 2024
In recent years, Mexico has consolidated itself as one of the most important countries in global manufacturing and, in great part, it has done so with the help of Mexican trucks. One would be included to see this success as a result of a boom in manufacturing and strategic investment in key industries. And, to some degree, such is the case. Just this year, the country achieved a crucial milestone, surpassing China as the top exporter to the U.S. in great part due to Mexico’s growing industrial capabilities—and the process known as nearshoring, through which Western economies are seeking friendlier partners. But, having factories is just one part of the story. For one to become the leading partner of the world’s largest economy, it’s not enough to have great manufacturing capabilities. Crucially, you must also have the ability to move products.
So, this week, we wanted to look more closely at the industry that has allowed Mexico’s manufacturing industry to shine. Namely, the country’s strong trucking industry—of which, little has been written. Because, as we soon will see, Mexico’s growing prominence in global trade would be impossible without the nation’s trucks.
Let’s start with the basics: trucking is, by far, the most prominent form of transportation in the country. As of 2023, it was estimated that ground transportation (excluding rail) accounted for 87.3% of all GDP generated by transportation in Mexico. Air Freight came at a very distant second with 7.4%, and was followed by Rail at 3.7%.
Not surprisingly, such a large economic impact is the result of large numbers. As of 2024—according to official figures from the Mexican government—Mexico boasted over 671,000 trucking units. Of these, 131,856 corresponded to two axis trucks (C-2s), while an additional 100,818 three axis trucks (C-3s). A number more surprising when considering that Mexico only has 3,584 trains in operation at the time of writing. So, in simple terms, trucks dominate the cargo market.
What’s most important is not how large the number of trucks is today, but rather, how drastically it has changed in recent years. Halfway through the twentieth century, Mexico registered just 1,841 in operation in the country—far fewer than the current 671,002. Just six years ago, in 2018, the total number of trucks in operation in Mexico was 569,192—over 100,000 less than today. This means that over the last presidential administration, trucking capacity grew by 17.8%.
Despite this drastic increase in trucking capabilities, the trucking market in Mexico is highly fragmented. In fact, it is estimated that, of all trucks in the country, 22.9% are owned by companies that have between one and five employees. An additional 29.3% is operated by small enterprises with between six and thirty employees—meaning that half of all trucks in Mexico are operated by small providers. Meanwhile, large companies hold just 30.8% of the Mexican truck fleet, meaning that, for the most part, Mexican companies have to deal with SMEs when planning their imports and exports.
There is no official register of the fleets of the top companies in Mexico. However, we looked at some of the household names in the Mexican trucking industry to better understand the size of the most prominent players in the industry—looking at both, their official websites, and some specialized publications on the topic. Amongst the companies considered in our research, Grupo Castores was the largest with a fleet of some 5,000 trucks. It was followed by Trayecto with 4,250 vehicles in operation and Grupo TUM with 3,800 vehicles.
Now, it is worth making an aside of what it takes to power the Mexican trucking industry, This large fleet of trucks is powered by fossil fuels. As of 2023, it was estimated that, of the more than 671,000 trucks operating in Mexico, 606,659 ran on diesel. The second most common energy source for the sector, regular fuel, was used by just 53,761 units—a whole order of magnitude less. Meaning that, to a great degree, Mexico’s manufacturing might be transported by polluting sources of energy.
But that is enough about trucks themselves. It is clear that Mexico has lots of trucks to transport its cargo to strategic points. The question, then, is where to?
By and large, the answer is the U.S. Mexico border. According to the most recent data from the U.S. customs and border patrol, there are well over 600,000 truck crossings per month at the border. Remember, again, that the entire Mexican truck fleet equalled just 671,002 units in 2024, meaning that—on average—almost every Mexican truck crosses the US-Mexico border at some point of the month—though it is likely that a large number of trucks cross the border multiple times a week, or even, a day.
Not all crossings are made equal, though. In fact, as the map above shows, the bulk of truck crossings happen in the city of Otay Mesa and El Paso. Just in 2023, Otay Mesa registered just over 22 million truck crossings a year, making it the single most important port of entry for the Mexican trucking industry.
Yet, despite the prominence of the border, we must note that Mexico’s trucking sector is far from being a northern phenomenon. In fact, it is quite the opposite. Of all units in the Mexican trucking fleet, 161,193 are registered in Mexico City—that is equivalent to 24.02% of all trucks, or almost a quarter of the trucking capacity in the country. (Namely, the place where each truck is originally registered with Mexican authorities and not The northern state of Nuevo Leon does follow soon after with 11.37% of all trucks, but the third and fourth states on the list belong to other states in the country’s center: Jalisco (7.53% of all trucks) and the State of Mexico (6.41%). As it turns out, the North accounts for 29.5% of Mexico’s trucking capabilities; the country’s central regions, in turn, represent for 56.9% of trucking capability.
In sum, Mexico has a powerful trucking industry that spans across the entire country, not just the US-Mexico border—although this is likely the end destination to most truck activity. Thanks to this powerful industry, the country is able to not just expand its manufacturing capabilities, but to export much of its products to the outside world. This, in turn, places Mexico at the epicenter of global commerce and as one of the key beneficiaries to the new nearshoring trend.
Simply put, while we often speak about Mexico’s great opportunity when it comes to manufacturing, we should also think of the country’s growing trucking capabilities needed to fuel that growth.
