San Luis Potosi
BMW's $1B+ EV investment; first Mexico OEM battery plant (2027); 6th in auto parts ($8.6B, 2024); 350+ automotive companies; 3,700 BMW workers.
San Luis Potosí is becoming Mexico's luxury EV production center. BMW's plant covering 300 hectares employs over 3,700 workers (36% women) and has produced 400,000+ vehicles since 2020. An additional €800 million investment—including €500 million for an 85,000 square meter battery assembly plant—will prepare the facility for Neue Klasse electric vehicles starting 2027. This makes San Luis Potosí the first location in Mexico where an OEM will produce both EVs and high-voltage batteries.
Ranked sixth nationally in auto parts production, the state generated $8.6 billion in output in 2024, representing 7.1% of Mexico's total. Its industrial ecosystem includes 350+ automotive companies, 166 Tier 1/2/3 plants, and 24 raw material suppliers. Between January and September 2025, the state attracted over $300 million in new and expansion projects across 14 facilities, creating 3,800 jobs. Vehicle production reached 349,616 units in 2024, with 355,370 projected for 2025.
By 2026, San Luis Potosí will test whether Mexico can capture luxury EV production. If BMW's battery plant succeeds and attracts related supply chain investments, the state could anchor premium electric manufacturing in North America. If tariff disputes exclude Mexican EVs from US incentives or battery materials face content-origin challenges, the billion-dollar bet on electrification may face headwinds.