Mexico one step closer to becoming the third largest auto parts manufacturer in the world

MEXICO - The president of INA, Francisco González, stated that Mexico will be able to position itself in third place thanks to the current situation with the increase in investments and the arrival of new companies to produce in North America.

The National Auto Parts Industry (INA) reported that the Free Trade Agreement between the United States, Mexico and Canada (USMCA) and nearshoring have positioned Mexico as the fourth largest auto parts producer in the world by the end of 2023, in addition to being the main supplier of parts and components in the US market, according to the National Auto Parts Industry (INA).

The value of auto parts production in Mexico reached US$121 billion, a record figure in the industry's history.

Additionally, Francisco González, president of INA reported that Mexico is in the competition to climb as the third largest manufacturer of vehicle parts and components worldwide, which is currently occupied by Japan, thanks to the increase in investments and the arrival of new companies to produce in North America.

“Growth continues to be very strong. We are one leap ahead, we have just beaten Germany for the fourth position, Japan is complicated, but we are growing quite a lot and Japan is getting smaller, so we are in a fighting level to be third place in the following years,” said Gonzalez.

“Several factors are mixed together, such as the USMCA, which has allowed to have a higher regional content in the North American area, at 75%, and that means that more parts that make up a car have to come from North America, and this is encouraged by nearshoring”, he explained.

According to Lilia González, journalist of El Economista, another part that will push Mexico to become a major player in automotive supply is electromobility, as more and more parts are produced for electric car assemblers for the United States and two companies already manufacture them in Mexico.