INA: Estimate growth of 102 billion dollars for auto parts sector

The National Auto Parts Industry (INA) estimated that by 2020 this sector will reach a value of 102,000 million dollars, that is, 2.7% more than in 2019, and around 105,000 million in 2021; Thus, Mexico would be the fourth largest producer of auto parts worldwide, above Germany.

Alberto Bustamante, director of Foreign Trade of INA, emphasized the advantages that the ratification of the T-MEC will bring in the growth in the production of this sector, because with the changes established, an increase in the regional content of the motor vehicles is contemplated.

“Currently, a vehicle to be able to enjoy the tariff preference of the Free Trade Agreement has to comply with a regional value of 62.5%; With the new rule of the T-MEC it is necessary to increase up to 75% in a period of 3 years from the entry into force, which allows to have a growth opportunity of 12.5%, in each vehicle that is manufactured in the area Naphtha, ”said the director.

For export, Bustamante said they estimate a value of 72,420 million dollars and in job creation they expect to close 2020 with 890,000 direct jobs, in addition to the 10,000 indirect jobs created by the new Toyota plant.

The manager reported that by 2020 an investment of more than 5,000 million dollars is estimated, and if everything continues, as predicted, by 2021 it is estimated that the investment will be 6 to 8 billion dollars.

With regard to the automotive industry, data from the Mexican Association of the Automotive Industry (AMIA) production decreased -4.0%, with only 320,405 units manufactured during January 2020, the production of light vehicles was composed with 39% of cars and 61% of light trucks.

Exports also decreased with 228,184 vehicles exported in January 2020, a variation of -5.8% compared to the same month last year.

The United States continues to be the main country to which Mexico exports, as it obtained a 79.3% interest in the first month of the year, with 180,858 vehicles sold, followed by Canada with 18,795 and Germany 8,764.

Also, during the same month, in sales there was a notable drop of -6.0%, with 104,832 units.