 "AUTOMOTIVE")
India and Mexico emerged as the top destinations for global automotive investment in the first half of 2025, attracting 22 and 34 projects respectively, according to a new report by BMI, a Fitch Solutions company. The findings highlight both countries’ growing importance in the global automotive supply chain, even as overall investment sentiment softened.
While the number of projects worldwide remained steady at 277 compared with 279 in H1 2024, the disclosed value of investments nearly halved to $55.2 billion from $114.7 billion a year earlier. Mexico’s lead, however, faces significant risks as US tariffs on auto imports and uncertainty over electric vehicle (EV) incentives prompt automakers to delay or scale back decisions.
India, in contrast, is consolidating its position as a preferred investment hub, buoyed by policy support under the Production-Linked Incentive (PLI) scheme and the National Critical Mineral Mission, which aim to strengthen domestic manufacturing and supply chain resilience.
Globally, the components segment attracted the largest share of projects with 86 in H1 2025. A notable shift was observed in passenger vehicle investments, with non-electric models recording a sharp uptick. This underscored a slowdown in EV-related activity amid weaker demand and policy uncertainty, particularly in the US. Regionally, Asia captured the largest share of investment by value at 52.4 per cent, while the Middle East and North Africa recorded strong growth in project numbers, albeit with smaller average deal sizes.
Despite the overall slowdown in high-value projects, BMI noted that India’s policy-driven momentum and Mexico’s manufacturing base will remain central to global automakers’ investment strategies, though both face diverging risks and opportunities in the months ahead.
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