The National Auto Parts Industry (INA, business chamber) in Mexico, the fourth largest in the world, registered a new historical record for that same month in May and for all of 2023 it expects a production of $115.8 billion, 10.45 percent more than in 2022, CEO Armando Cortés Galicia said in response to a question from SteelOrbis at a press conference.
"$115,802 million is expected for 2023, which represents a 10.45 percent increase compared to all of last year," Cortés responded.
He said the increase will be driven by the demand for auto parts in the foreign market. For 2023, the forecast is for $99.1 billion in exports, 11.1 percent more than in 2022. Sales to the world will represent 85.6 percent of total production.
The main consumer of Mexican auto parts is the United States. Of the total imports, Mexico contributes 42.7 percent, well above the 10.8 percent of second place, Canada, and third place, China, with 7.6 percent.
The auto parts production forecast for the domestic market is $16.69 billion, 14.4 percent more than in 2022. Despite the increase, its participation in the total will decrease from 14.9 to 14.4 percent.
Cortés Galicia said that the expected growth is due to new investments in the sector. Only in May, the production value registered a historical maximum with $10.47 billion, for the same month. All things considered, May was the second highest value, second only to the all-time record of $10.56 billion in March of this year.
By region, he commented that Nuevo León displaced the state of Chihuahua from second place in the North zone, which concentrated 43.3 percent of the production. In the Central zone, Puebla ousted the State of Mexico from first place and Tlaxcala was located in fourth place when traveling to Mexico City.
The increase is due to the greater dynamism of the automotive industry and the greater production of motorcycle parts.
With more than 900 companies affiliated to the INA, Mexico is the fourth largest supplier of auto parts in the world, only surpassed by Japan, the United States and China. In 2021, Mexico ousted Germany from fourth position, the business chamber reported.