Mexico established itself as the main supplier of auto parts in the United States, with a share of 37.3%, reflecting almost 10 percentage points more than in 2007 from January to May.

This amount is equivalent to four times more sales than its closest competitor, which is China, which maintains the contribution of 9.9% of US imports, the same as in 2007.

According to the National Auto Parts Industry (INA), the production of vehicle parts and components in Mexico rebounded 49.38% during the first five months of 2021 by adding 39 thousand 505 million dollars, compared to 26 thousand 445 million of the same period of 2020, when the Covid-19 pandemic occurred.

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The dynamism shown by the auto parts industry in Mexico led to a total trade surplus of 10,408 million dollars, where the largest shipment to the United States is shown, followed by Canada and then Brazil.

Mexico imported 11,439 million dollars in auto parts from the United States, which represents 51.3% of its total purchases of parts and components; while from China they were 3,321 million, with 14.9%; another 1,337 million of Japanese origin with 6% of purchases. It is followed by 1.315 billion dollars from South Korea and a similar amount from Germany.

Within the total production of the industry, Mexico sent 89.9% of the value of its production to the United States during the first 5 months of the year, which is equivalent to 29 thousand 395 million dollars, in order to supply 16 light car plants in the U.S.

While in 2007 Mexico contributed 27.64% of US imports of light vehicle parts and components, in 2021 the percentage reached 37.32% of these purchases abroad.

The main auto parts that the Mexican industry sends to the northern neighbor are: harnesses, wires and cables, gearboxes and their parts, brake mechanisms, internal combustion engines, lighting or visual signaling devices, air conditioning devices, stamped parts. and accessories for bodywork, axles with differential and their parts, air bags and seat belts, among others.

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While it buys from the rest of the world via import components such as die-cut parts and accessories for bodywork, internal combustion engines and components for harnesses, brakes, differential shafts, air bags and seat belts, among other multiple inputs to manufacture.

Coahuila heads the list of states with the highest production of auto parts with a participation of 16.9% of total manufacturing, followed by Chihuahua with 12.4%, Guanajuato with 11.1% tied in that position with Nuevo León which registers 10.9%, between January and May of 2021.

Mexico sends auto parts, mainly to five states of the American Union, where Texas stands out broadly with 90.16%. They are followed by California, South Carolina, Arizona and Louisiana with 4.28%, 2%, 1.86% and 1.05%, respectively.

With the forecast of sales of 17 million cars in the United States, it is estimated that the auto parts industry will increase 19.8%, at the end of 2021, with the factoring of 93 thousand 962 million dollars, after the INA proceeded to carry out a 1% downward adjustment due to shortage of semiconductors.

In Solili you can consult the Industrial Real Estate Report in Mexico as of July 2021

Original Note