Mexico. The automotive supply chain in Mexico faces significant challenges and opportunities in the new economic environment of North America.
Experts in the sector agreed that strengthening the network of national suppliers is essential to maintain competitiveness in the face of possible tariff measures and to take advantage of nearshoring.
Within the framework of the panel "Strengthening the supply chain in the new economic environment of North America", one of the main topics of analysis was the possible imposition of new tariffs by the United States. If implemented, production costs would rise, directly affecting consumers and reducing the region's competitiveness vis-à-vis Asia and Europe. It is estimated that the average price of cars in the U.S. could increase by $3,000, with a reduction of one million units in sales and a 15% decrease in U.S. imports.
Despite the challenges, nearshoring continues to drive the growth of the Mexican automotive sector. Business opportunities for domestic suppliers increased by 214% in January 2025 compared to the same period last year, reflecting a growing interest in local manufacturing.
"49% of the new investments announced in the last 3 years belong to the manufacturing sector and a very high percentage to the automotive industry sector. Investments in the industrial sector take a process of around 18 to 24 months after their announcement to begin their impacts on the supply chain since it is the time when a large company begins to operate, in such a way that we are currently feeling the positive effects of the start of operation of these new investments," commented Rene Mendoza, national president of the Industry Supply Chain in Mexico CAPIM.
Against this backdrop, the experts stressed the importance of strategies that promote national content in automotive production. The key lies in improving the integration of local suppliers in the value chain, thus ensuring greater stability and competitiveness in the region.
"We clearly see how this new environment put the accelerator on us to be more efficient in our value chain and we are convinced that strengthening the supply chain in Mexico is the key to being prepared for any tariff eventuality and the International Automotive Industry Supply Summit Mexico 2025 is an excellent tool to achieve this and thus support the effective implementation of Plan Mexico," commented INA and CAPIM.
