Auto parts production will reach around US$125 billion in 2024: INA

MEXICO - The National Auto Parts Industry (INA) announced that production for 2024 is estimated to reach close to US$125.5 billion, which would represent a growth of 3.1% compared to what was registered in 2023.

In this regard, Armando Cortés Galicia, general director of INA, mentioned that, with data from January to October of last year, the production of components in Mexico maintained the forecast of US$121 billion for the close of 2023, which translates into an increase of around 17% with respect to 2022. The final figures will be released in March of this year.

The director emphasized the auto parts industry's export profile, since 87% of production is sold abroad and 13% is destined for the domestic market. He also explained that of the 35 countries that registered foreign direct investment in the auto parts sector in Mexico from 2006 to November 2023, China represented only 4% of the total, without considering Taiwan and Hong Kong.

In addition, he explained the importance of the United States as Mexico's trading partner and main destination for its auto parts exports, as a result of existing agreements such as the USMCA, which boost regional exchange and offer an attraction for countries seeking to invest in North America motivated by nearshoring and the production of new components for electromobility.

The director mentioned that the National Registry of Foreign Investments shows the investment of 33 companies of Chinese origin in the auto parts sector in Mexico from 2006 to November 2023, which generated an estimated value of exports to the United States of US$1 billion in 2023, representing just 1.17% of the forecast of total auto parts exports from Mexico to the United States during the past year.