Mexico positioned itself -for the first time- as the fourth largest auto parts manufacturer in the world during 2021, surpassing Germany, revealed the director of the National Auto Parts Industry (INA), Alberto Bustamante.
The Mexican auto parts sector had a turnover of 94,778 million dollars at the end of 2021, while Germany produced 87,224 million dollars, an amount that dropped to the last place in the top five for the manufacture of parts and components.
Mexico’s rise is due to a greater Regional Content Value (VCR) in the manufacture of its auto parts to comply with the provisions of the Trade Agreement between Mexico, the United States, Canada (USMCA) to reach the level of 75% of components of the North American region; in addition to the positive impact of the trade war between the United States and China, which gives our country a greater opportunity to supply the US market, Bustamante explained.
Also, the director of the National Auto Parts Industry He specified that as a result of the installation of German automotive production lines in Mexico, as is the case of BMW and Mercedes Benzhave proceeded to make investments to expand their presence of suppliers that supply them locally.
At the end of 2021, China remains the main auto parts producer in the world with a value of 470,000 million dollars; followed by the United States with 228,000 million dollars and in third place is Japan with 172,000 million. Thus, Mexico rises to fourth place with 94.778 million and 87.224 million dollars made by Germany.
According to the analysis carried out by the INA, the decline in the production of auto parts by Germany is not a phenomenon observed in the Covid-19 pandemic, but rather an effect that has gradually occurred over the last six years.
“It is mainly due to this technological change in which the factories meet for the production of new technology auto parts, whose investments are in Eastern Europe for the production of low-cost countries,” Bustamante said.
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