Mexico is the most important supplier of auto parts for the United States, surpassing China, Canada, Japan and Germany, said Oscar Albin, executive president of the National Auto Parts Industry (INA).

It is important to closely monitor the US economy, because as long as its economy holds, the Mexican auto industry will hold.

“80% of what we produce in Mexico ends up in a new car factory in the United States and another 10% in car factories in Mexico, which is finally exported. In other words, we are the industry that generates the most net foreign exchange, we are a pillar for the Mexican economy ”, he explained.

Industry contributes approximately 19% of manufacturing GDP and has close to one million jobs in automotive manufacturing. In the world ranking, Mexico is placed as the 7th producer and the 4th exporter of vehicles.

Check here: Chihuahua is more attractive to the industry since the pandemic

According to forecasts, Mexico, the US and Canada are expected to produce 17.03 million units by 2022; meanwhile, by 2023 they are expected to reach 16.82 million.

The president of the INA announced that in our country there are around 600 Tier 1 and 900 Tier 2 + Tn suppliers that supply and make OEMs comply with their regional content requirements.

He added that Mexico is the 5th largest auto parts producer in the world with 98 billion dollars and that the location of the most important auto parts manufacturers in the world strengthens the production chain.

Oscar Albin said that there are important opportunities to obtain more Foreign Direct Investment in Mexico, because in 2021, according to estimates, auto parts imported by the United States, Mexico and Canada - mainly from Asia and Europe - will reach around 93,981 million Dollars.

“With the T-MEC they will have to emigrate to be manufactured and bought within the region; We believe that they will be repatriated in Mexico within the next few years and this is an opportunity for growth ”.

Of interest: Ciudad Juárez is the fourth largest demand for industrial space with almost half a million m²

Some of the main auto parts imported from Asia are bodywork accessories, gearboxes and internal combustion engine parts; from Europe, gearboxes, piston engines and parts of devices for filtering or purifying liquids or gases, among others.

The executive also considered that growth will come with the production of electric vehicles and as Mexico manufactures 100% of the harnesses required in North America, the harnesses with the electric car will grow twice or triple.

Given the shortage of semiconductors, Mexico has a great opportunity, where there are already companies that have facilities in Mexicali and Guadalajara where this process is carried out. That is where we have the opportunity, but those factories will begin to generate the chips within a year and a half or two, said the manager.

In Solili you can consult industrial warehouses available in Monterrey, Saltillo and Tijuana

Original note