Auto parts production surpassed US$10 billion in January

Auto parts production surpassed US$10 billion in January

MEXICO - The National Auto Parts Industry (INA) explained that the production of automotive components has consolidated its growth trend at the beginning of this year, reaffirming the forecast for the close of 2024, which will exceed US$125.6 billion, representing 3.74% growth compared to 2023, being a historical record.

INA mentioned that, during the month of January 2024, auto parts production exceeded US$10 billion, being the highest value recorded in this month in the last 6 years, thus demonstrating the dynamism of the industry.

In addition, the association's CEO, Armando Cortés Galicia, explained that despite the fact that the traditional regions (North, Bajío and Central Mexico) are the main auto parts producers, representing 95% of the country's production, there are other regions that are driving the growth of the sector at a national level.

The executive pointed out that an example of this growth is Yucatan, a state that traditionally has not focused on the automotive industry, although now it has shown a growth of more than 117% in auto parts production, comparing the periods from January 2023 to the same month of 2024.

Similarly, he mentioned the case of Zacatecas and Durango, which have grown in the same item 31.5% and 18.8%, respectively.

"This shows that the auto parts industry is an industry that diversifies and generates development for the country," he said.

In terms of exports, the association reiterated that the United States remains the main destination for the production of domestic auto parts, since nearly 87% is directed to that country, so the trend of being the main supplier of components to the U.S. market will continue to consolidate. It is followed by Canada, representing 3.1% of exports, and Brazil with 2%, so Mexico maintains a trade balance surplus of 3.203 billion dollars.