Mexico. The National Auto Parts Industry (INA) announced that the production forecast of automotive components for the end of 2023 has been adjusted, estimating a higher value than the previous one that now amounts to 121,716 million dollars.
This represents an increase of 17% compared to the end of last year, which according to the Association demonstrates the dynamism and resilience of the sector.
Armando Cortés, general director of the INA, stated that the national industry showed significant strength in production this year, since in six months of the first three quarters a value of more than US$10,000 million was recorded, historic figures that the country had not yet reached, so the forecast for 2024 is positive.
In addition, the INA explained that most of the production of auto parts is destined for exports, highlighting its gradual increase in recent years, since in 2020 foreign sales accounted for 83% of production and, by 2023, they grew to 87%. North America has become the main destination for automotive parts manufactured in Mexico with more than 90% of its exports (U.S. 87% and Canada 3.5%).
The Association emphasized that the country ends the year with a positive trade balance in the auto parts sector, with a value that exceeds US$28,000 million, thanks to the trade relationship with the United States, which covers about 43% of its market.
In terms of foreign direct investment (FDI) for the automotive components industry, the INA mentioned that at the end of the January-September 2023 period, it increased by nearly 60% compared to the same period of the previous year, with the United States being the main investor country in Mexico with a cumulative amount of US$4,272 million from 2019 to the third quarter of 2023.
INA mentioned that Mexico has received around US$10,250 million of FDI from 2019 to September of this year for the auto parts sector, so the U.S. represents about 42% of this figure, followed by Japan with 19%, Germany with 16% and Canada with 7% of investments.
