Mexico expands dominance in U.S. auto parts market

Mexico consolidated its leadership as the main supplier of auto parts to the United States in 2025, reinforcing its strategic role within the North American automotive industry despite a more protectionist trade environment.

According to industry data, Mexico increased its share of U.S. auto parts imports to 43.74%, up from 42.86% the previous year, reaching a new historic high. This means that more than four out of every ten components imported by the U.S. were manufactured in Mexico.

The country’s performance stands out even as other major competitors lost ground. China reduced its share to 6.65%, while Germany also declined, highlighting Mexico’s growing dominance in the sector.

The United States remains by far the primary destination for Mexican auto parts exports, absorbing around 87% of total shipments. Other markets such as Canada, Brazil, South Korea, and China account for significantly smaller shares.

In terms of production, Mexico’s auto parts industry reached a value of approximately US$119 billion, confirming its status as a cornerstone of the country’s manufacturing sector. Electrical components led production with nearly 20% of the total, followed by transmissions, interior components, engine parts, and suspension systems.

Despite a slight annual decline in output, the industry maintained solid fundamentals, supported by strong integration with U.S. vehicle manufacturing, which surpassed 10 million units in 2025. This close linkage continues to drive demand for Mexican-made components across the region.

The results underscore Mexico’s deepening specialization and its critical role in North America’s automotive supply chain, positioning the country to remain a key player amid shifting global trade dynamics.