Business

Mexico's Auto Parts Industry Hits the Gas Pedal

Mexico's auto parts industry experiences rapid growth due to nearshoring & higher demand from T-MEC's Regional Content Value. Proximity to the US & trade agreements boost exports. Recovery in the auto market fuels increased parts sales.

Mexicanist

Jul 27, 2023 — 2 min read

Proximity to the US and multiple trade agreements boost Mexico's auto parts exports, driving industry success. Image by Dmitry Steshenko from Pixabay

The auto parts industry in Mexico has been experiencing a significant acceleration in recent times, primarily due to two key factors: nearshoring and the rise in demand for parts triggered by the increase in the Regional Content Value, as set by the United States-Mexico-Canada Agreement (T-MEC).

According to data from the National Auto Parts Industry (INA), the first four months of the year saw a remarkable surge in auto parts production, totaling a staggering 38.801 billion dollars. This marked an impressive annual increase of 13 percent, signaling the robust growth of the sector.

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