The national auto parts industry is experiencing a moment of great fortune, and it could be said that all the stars are aligned in its favor.

The greater demand and growth in the production of light vehicles in the United States, greater commercial integration with our northern neighbor, the US trade war with China and the decision of German companies to transfer their auto parts production to Eastern European countries , like Poland, have been decisive for the sector to recover faster from the crisis caused by the COVID-19 pandemic.

And most importantly, Mexico moved up a step in the world ranking of auto parts producing countries, ranking fourth and displacing Germany. The expectation is that Mexico consolidates itself in this fourth position and moves forward to unseat Japan from third place. "All these new investments, especially in T2 and T3, will allow us to be a fundamental part of global supply," said Alberto Bustamante, president of the National Auto Parts Industry (INA).

“Foreign Direct Investment (FDI) in the national auto parts industry during 2021 reached historical figures; We are talking about 3,964 million dollars, which contributed 70% of the total investments in the transport sector and 32% of the total of the manufacturing industries. Of these, the investments made by the US in our country stand out, which totaled 2,325 million dollars in that year, 1,539 million dollars more than in 2020, when they added only 786 million dollars”, highlights the manager in an interview with Alto Nivel.

Of interest: T-MEC and electric vehicles impact industrial demand

Currently, he indicates, the first place in auto parts production is occupied by China, followed by the US with 228,000 million dollars, Japan with 172,000 million dollars and, finally, Mexico with 95,000 million dollars, according to figures for 2021, the executive detailed.

Until the month of April, the INA forecasts that the production of auto parts in the country would reach 100,000 million dollars, a growth of 6.3%. However, this figure has already been exceeded and could reach between 101 and 102 billion dollars.

Coahuila continues to be the state with the highest production of auto parts in the country, due to the FDI that has recently arrived in the entity. Today, it represents 17.2% of the total production of auto parts in the country, followed by Chihuahua with 11.9%; Nuevo León with 11.4%, Guanajuato with 11.1%, Querétaro with 6.8%, State of Mexico with 6.09%, Tamaulipas with 6.07% and San Luis Potosí with 5.3%, indicated Alto Nivel.

The main auto parts exported by Mexico are labor-intensive parts that can hardly be replaced by robots in their manufacture. Mexico can compete worldwide in auto parts, such as harnesses, wires and cables, stamped parts and accessories for bodies, seats and their parts, gearboxes and their parts, brake mechanisms, internal combustion engines, lighting devices. or visual signaling, air conditioners, axles with differential and their parts, air bags and seat belts, he explained.

Check here: The decline in industrial vacancy in Guanajuato begins

What would need to be done would be to carry out an optimization of the manufacturing and logistics processes while maintaining the strengthening of the region's supply chain, as the main objective to avoid imports from Asian countries. considers the president of the INA.

The training issue is also decisive through the link with universities and the federal, state and municipal governments, as well as the development of suppliers are important points to work on in Mexico.

The trade conflicts between the US and China represent a great growth opportunity for our country, since many companies want to establish themselves in Mexico to meet the needs of the region and, specifically, the value of the regional content to be met.

In Solili you can consult industrial buildings available in Ciudad Juarez, Tecate and Mexicali

Original note