Mexican auto parts’ industry strengthens: INA
MEXICO – Mexico increased its presence in the US auto parts market by 10 percentage points during the last ten years, however, thanks to the USMCA, it is expected to increase its position by substituting US imports from China, Germany, Japan and Korea; this was reported by the president of the National Auto Parts Industry (INA), Óscar Albín.
To date, Mexico is the main supplier of automotive parts and components in the United States, with 38% of the imports it carries out; for its part, China stagnated with 9%, Japan owns 8.3%, Germany 6.6% and Korea 5.3%.
Albín added that as the rule of origin of automotive parts and components is adjusted towards a greater regional content in North America, the industry in Mexico will be one of the big winners, in addition to the fact that it is estimated that in 2022 the sector will be fully recovered after the impact generated by COVID-19.
He also warned that as long as Japan, Germany and Korea have vehicle manufacturing in the US, they will continue to send auto parts, however, said participation will decrease as the percentages of regional content value required by the USMCA progress.
For the northern neighbor, the preponderant role played by the USMCA is clear; 47% of imports come from Canada and Mexico, aiming to increase regional content.
Currently, automakers installed in Mexico, such as BMW, Audi, Nissan, Mazda and KIA are already working together with their suppliers in order to locate more supplies and face the shortage of production of components that come from Asian plants.
The future of the auto parts sector is promising as “US vehicle sales surpass 16 million new units,” highlighted the INA leader.
Source: El Economista