Mexico Leads as North America's Top Auto Parts Supplier

Mexico leads as the top auto parts supplier to the U.S. in 2025, driven by FDI growth, regional hubs, and strong North American trade integration.

Mexico continues to solidify its role as the backbone of automotive manufacturing in North America. In the first four months of 2025, the country produced $38.22 billion USD worth of auto parts, ranking as the leading supplier to the United States. With a 43.21% share of total U.S. imports, Mexico outpaced major global players such as Canada, Japan, and China.

This performance underscores the structural strength of the sector, even amid an 8.95% year-over-year decline. Foreign investor confidence remains a driving force, with foreign direct investment (FDI) in the auto parts industry growing by 148% to reach $625 million USD in just the first quarter.

North America Reinforces Its Strategic Role in Auto Parts Trade

Of Mexico’s total auto parts exports—valued at $33.3 billion USD—an overwhelming 87% were destined for the United States, followed by Canada with 3.6%. These figures reaffirm the strength of the North American trade bloc and its deep integration within the automotive supply chain under the USMCA framework.

On the import side, Mexico brought in $21.6 billion USD in auto parts, with the U.S. accounting for 54% of the total. The sector recorded a substantial trade surplus of $11.7 billion USD, reflecting Mexico’s competitiveness in this strategic industry.

Coahuila, Guanajuato, and Nuevo León: Regional Leaders in Specialized Manufacturing

Mexico’s output includes high-value components such as electrical parts ($7.3 billion USD), transmissions and clutches ($3.8 billion USD), automotive interiors ($3.5 billion USD), and engine parts ($3.1 billion USD). These segments showcase not only production capacity but also a rising level of technological sophistication.

Regionally, Coahuila, Guanajuato, and Nuevo León stand out as key manufacturing hubs, driving employment, infrastructure development, and innovation across their industrial corridors.

Auto Parts Industry Calls for Sector-Specific Implementation of Labor Reform

In light of the proposed labor reform to reduce working hours, the National Auto Parts Industry Association (INA) has called for sector- and company-size-specific implementation. Given the 24/7 and just-in-time operational model of the auto industry, flexibility is essential to maintain global competitiveness.

INA has recommended aligning the discussion with the provisions of Chapter 23 of the USMCA and including compensatory measures that preserve productivity while respecting labor rights.

Mexico Advances with Steady Momentum in the Automotive Sector

Despite current challenges, Mexico’s auto parts industry continues to demonstrate adaptability, investment appeal, and a central role in the future of global mobility. Continued progress will depend on advancing technological development, supporting local talent, and ensuring that regulatory frameworks reflect industrial realities.