INA forecasts 3.1% expansion in Mexican Autoparts Production for 2024

By Israel Molina

Mexico City

January 11, 2024

The Industria Nacional de Autopartes (INA) has announced its projection that automotive parts production in 2024 will amount to approximately $125.5 billion, signifying a 3.1% growth compared to the figures recorded in 2023.

Armando Cortés Galicia, the General Director of INA, shared insights, stating that based on data from January to October of the previous year, component production in Mexico remained on track to meet the forecast of $121.716 billion by the end of 2023, marking an increase of around 17% compared to 2022. The finalized figures will be disclosed in March of this year.

Emphasizing the export-oriented nature of the autoparts industry, the director highlighted that 87% of the production is sold abroad, while the remaining 13% caters to the domestic market.

Trade Partner Insights

Cortés further explained that, among the 35 countries with foreign direct investment in Mexico's autoparts sector from 2006 to November 2023, China accounted for only 4% of the total, excluding Taiwan and Hong Kong.

He also underscored the significance of the United States as Mexico's key trade partner and the primary destination for autoparts exports. This dynamic is strengthened by existing agreements such as the USMCA, fostering regional exchange and presenting an attractive proposition for countries seeking to invest in North America, driven by nearshoring and the production of new components for electromobility.

Chinese Origin Insights

Concluding, the director highlighted data from the National Registry of Foreign Investments, showcasing the investment of 33 Chinese-origin companies in Mexico's autoparts sector from 2006 to November 2023. These companies generated an estimated export value of $1.083 billion to the United States in 2023, representing just 1.17% of Mexico's total autoparts export forecast to the United States for the previous year.

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