The auto parts industry in Mexico registers never-before-seen production numbers, according to the most recent data from the civil association Industria Nacional de Autopartes (INA).
In May, the industry reached a production of 10,475 million dollars, the highest figure for a month of May in the industry, said Armando Cortés, general director of the INA.
The production of auto parts in the period from January to May registered a year-on-year increase of 16.71%, equivalent to 49,457 million dollars, the INA reported at a press conference.
“The data are in line with the projection that the industry has for the end of 2023 of 115,802 million dollars, which would represent an increase of 10.45% compared to the production of 2022,” Cortés said.
This figure would place Mexico as the fourth-largest manufacturer of auto parts worldwide, only below China, the United States, and Japan.
The main components produced in Mexico in the first five months of the year were electrical parts, which accounted for 19.5% of production.
The second component manufactured by the auto parts industry in Mexico are transmissions, clutches, and their parts, which registered 10% of production from January to May, followed by fabrics, carpets, and seats, which covered 9.2%.
“The auto parts industry in Mexico is experiencing a historic moment due to the commitment to clean mobility and the production of auto parts itself,” Cortés said.
According to Cortés, among the causes of the growth of the sector is the search of the United States government to create “strong and resilient” supply chains, promoting investments in the region in technologies related to the industry, such as semiconductors.
He also noted that the Inflation Reduction Act, which proposes to provide different incentives in favor of the adoption of electric vehicles and includes the two members of the treaty, has helped the growth of the sector.
“The second point that has allowed us to grow is foreign direct investment in our industry,” said Cortés, who recalled that the Inter-American Development Bank (IDB) predicted that Mexico would be the winner of Latin America in nearshoring, thanks to competitive advantages such as its geolocation, trained human talent, and productive complexity.
