INA estimates growth in auto parts production

MEXICO – The National Auto Parts Industry (INA) announced at a press conference that the auto parts sector estimates a growth in the production of zero-emission auto parts and charging stations in Mexico, due to the Inflation Reduction Act (IRA) in the United States, among other factors.

This Act includes, among other important issues, incentives such as a current tax credit of US$7,500 to purchase an electric vehicle, as long as it is less than US$80,000 in the case of VANs, SUVs and pick ups; and US$55,000 in the case of other vehicles.

INA forecasts that between 2035 and 2040, 50% of the cars manufactured in the region will be zero-emission, which will represent an important opportunity for the auto parts sector.

In terms of charging stations, INA reported that there are 1,189 vehicle charging stations in Mexico. The global leader in this area is the Netherlands, with more than 58,500 stations; Germany, with 24,600; and France, with 21,000. The country also has 2,193 electric connectors, which represents a ratio of 3 to 1 cars per charger installed.

INA also announced that in the last 23 years, the Free Trade Agreement between Mexico, the United States and Canada (T-MEC) has attracted foreign direct investment of US$48.3 billion in the auto parts sector and with it, the creation of 875 thousand direct jobs.

Mexico is the main auto parts supplier for the United States, since 39% of the total imports of said country come from Mexico; that is, close to US$80 billion by the end of 2022.