So far this year, the automotive and auto parts industry has shown important signs of recovery, mainly driven by nearshoring and the Treaty between Mexico, the United States and Canada (T-MEC), a situation that could improve even more given the start of implementation of regional content standards.

In accordance with said treaty, it will be in July of the following year when the norm that establishes that the units must have 75% regional content enters into force, which –in the case of Mexico– implies a greater effort on the part of the manufacturers to reach this figure and also an important area of opportunity.

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The National Auto Parts Industry (INA) has indicated on various occasions that the rules of origin could attract more investment to Mexico during 2023, because it will be the year in which the highest percentage will be applied for passenger vehicles and light trucks.

During the last three years, there have been gradual increases in the regional content of vehicles manufactured in Mexico and in 2023 the maximum limit of 75% will be reached. The importance of complying with this requirement is that vehicles manufactured in Mexico will be considered "originating" and will be exempt from paying tariffs to enter the North American market.

This same benefit, added to the trade war between the United States and China and the confinement that the latter maintains in the face of the outbreak of Covid, has accelerated the impact of another phenomenon that took hold as a result of the pandemic: nearshoring.

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INA estimates indicate that nearshoring has the potential to attract investments of up to 70 billion dollars in Latin America, of which more than 50% may stay in Mexico. Record figures are also expected by the end of 2022, where it is estimated that they will receive 4 billion dollars due to this phenomenon.

Several of the companies that are coming to the country are oriented towards electromobility, which could accelerate the transformation of this industry in the country.

In Solili you can consult industrial warehouses available in Monterrey and Tijuana

Original note