Mexico. The National Auto Parts Industry (INA) highlighted at a press conference that the automotive components sector receives investments from a large number of countries derived from the numerous trade agreements that the country has.
In addition, the INA pointed out that this industry is subject to numerous regulations at the international level and requires rigorous certifications to enter the Mexican market.
The general director of the INA, Armando Cortés Galicia, reported that, in the period between 2006 and November 2023, Mexico has received Foreign Direct Investment from a total of 815 companies from 35 countries, dedicated to the manufacture of vehicle parts.
Of particular note is the participation of the United States, with around 29% of the total, equivalent to 234 companies, Japan with 159 companies, South Korea with 96 companies and Germany with 90. These countries are the most relevant in terms of Foreign Direct Investment (FDI) for the Mexican auto parts industry.
The Association also pointed out that Mexico's automotive components sector has been consolidated with a positive trade balance, registering an amount of 34,400 million dollars, during the period from January to November 2023.
Cortés Galicia explained that in recent years there has been an increase in exports of auto parts. In 2020, approximately 83% of domestic production was sold abroad, while in November 2023 this figure increased to 87%, mainly exporting to the United States. This phenomenon contributes significantly to strengthening the export profile of the industry.
The Association also highlighted that the effects of the pandemic on the sector have been fully overcome, evidenced by a sustained growth in the national production of auto parts and the achievement of monthly historical records. Therefore, the sector is expected to reach a production value of $125.5 billion by the end of this year.
