Puebla
Largest auto factory in Mexico (VW Puebla, 13,000 workers); VW + Audi 12.27% of national output; $19B+ annual exports; Audi €1B EV investment.
Puebla hosts the largest automobile factory in Mexico: Volkswagen's Puebla plant, spanning 300 hectares with 13,000 workers—second only to VW's Wolfsburg headquarters globally. Adjacent Audi operations complete the German automotive cluster. Together, Volkswagen and Audi produced 455,397 vehicles in January-November 2025, representing 12.27% of Mexico's total output and 12.21% of exports.
The automotive industry accounts for over 60% of Puebla's exports, with annual export value exceeding $19 billion. Germany leads FDI with $7.28 billion since 1999, followed by the US ($5.57B) and Spain ($2.35B). Volkswagen produces the Jetta, Tiguan Long Version, and Taos; Golf production will restart by 2027. Audi is investing €1 billion to build EVs, preparing the cluster for electrification. In 2024, Volkswagen de México produced 382,312 vehicles—though January-May 2025 saw a 27% production decrease.
By 2026, Puebla will test whether German commitment to Mexican production survives global restructuring. Volkswagen's plan to restart Golf production signals long-term investment, but production volatility in 2025 raises questions about capacity utilization. If VW and Audi's EV transitions succeed and supplier clusters adapt, Puebla could anchor German electric manufacturing in the Americas. If restructuring shifts production to other regions, Mexico's largest auto plant may operate below potential.