Queretaro: Leader in auto parts production with US$9.5 billion

Queretaro has evolved from being merely a logistical hub in the Bajio region to becoming a strategic and indispensable hub for the automotive manufacturing industry in Mexico. With auto parts production reaching US$9.3 billion in 2025 and projected growth to US$9.5 billion by the end of 2026, the state remains firmly in fifth place nationally in the sector, contributing a robust 7.8% to the country’s total.

Queretaro’s true strength lies in the depth and diversification of its supply chain: the state is home to six OEM assembly plants focused on heavy-duty, multipurpose, recreational, and supercars (such as Volkswagen Trucks and Buses, Scania, CNH Industrial, VUHL, BRP, and AGCO).

This dense network of subcategories not only bolsters local employment—with more than 123,000 direct jobs—but also endows the sector with unique resilience; since there are multiple sourcing options for a single component, automakers reduce their logistical risks and accelerate development times.

Despite its maturity, Queretaro’s supply chain faces crucial challenges in securing its leadership in the era of nearshoring.

The immediate challenge will be to ensure that local small and medium-sized enterprises ride the technological wave of electrification and semiconductors, guaranteeing that Queretaro’s engine continues to roar powerfully in the global market.