Latin America. Taiwan is the tenth largest supplier of auto parts to Mexico. Currently, companies in the Asian country have approximately 300 companies in the Latin American nation that generate 60,000 jobs.
During the last edition of the INA PAACE Automechanika 2022, the Taiwanese commercial office in Mexico had ten Taiwanese companies of high quality auto parts at its stand. Among the products on display, 23 of them winners of Taiwan's Excellence Award, were automotive electronics, tires, auto parts and pneumatic tools.
In his speech within the same event, the president of the Mexican Association of the Automotive Industry (AMIA), José Zozaya, stressed that this sector has accumulated 32,000 million dollars of foreign direct investment (FDI) between 2017 and 2021, also has a tradition of a century of activity in the country, which has led to it having one of the best competitive costs in the world.
He also stressed that the assembly companies are technology integrators from different countries of the world, "and this is the clearest proof of what we do in the automotive sector, an integration." Zozaya then said: "Hopefully our friends in Taiwan will deliver more of their auto parts and we will have a more fluid trade."
In recent statements to the Mexican portal Expansión, Taiwan's ambassador to Mexico, Armando Cheng, said that the country stands out as the best option for investors in Latin America given its geographical location.
Cheng stressed that there is a special emphasis by investors on making a place in the Mexican automotive sector, especially in the auto parts segment.
This comes amid the U.S.-China trade war, and even more so with the effect of the pandemic on global supply chains, which has motivated the nearshoring trend (when a company transfers part of its production to countries that are close to its target market and within a similar time zone) to take hold.
This was demonstrated by a group of delegates from the island who visited Ciudad Juárez, Chihuahua, in January of this year, after being attracted by the dynamism of component production.
In total, Taiwan has 300 companies of various turns in Mexico, among which are the manufacturer of servers, connections and other computer components, Inventec, and the electronic products Company Foxconn, both installed in Ciudad Juárez, Chihuahua.
