Mexico's auto parts production will likely reach a record of nearly US$107 billion this year, up nearly 13% from last year, the head of the national auto parts lobby said.
Mexico's huge automotive and auto parts manufacturing sector is a key driver of the country's manufacturing industry, which is tightly integrated into the U.S. and Canadian supply chains.
INA director Alberto Bustamante told reporters that he expects the value of production to rise to about $109 billion next year and then exceed $110 billion by 2024.
"The trade war the U.S. has with China is a huge factor," he said, also pointing to the growing investment by Chinese companies in Mexico, as well as U.S. incentives for Mexican-made vehicles and the North American Free Trade Agreement.
Bustamante also said that production should benefit from the recovery from the semiconductor shortage. INA estimated that some 285,578 Mexican vehicles this year were affected by the shortage.
In North America, this figure reaches 726,392 vehicles, INA said, down 70% from last year.
However, Bustamante noted that one of the industry's main challenges next year would be to secure semiconductor supplies, in addition to meeting the government's May 1 deadline for ratifying collective bargaining agreements.
Within the Mexican market, the country's Automobile Dealers Association (AMDA) said sales increased 15% in the first 11 months of 2022, with more than a third of the market dominated by Nissan, General Motors' Chevrolet and Toyota.
The Mexican Automotive Industry Association (AMIA) reported a production jump of 8% in November, although exports -mainly destined to the United States- fell by 3.8% in the month.
Industry representatives also expressed concern over the widespread regularization of so-called "chocolate cars" (illegally imported used vehicles) which, they argued, was driving down used car prices and benefiting criminal gangs.
Source: amia.com.mx ina.com.mx
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