Mexico increased the value of its auto parts production by 10.3% between 2011 and 2012, displacing South Korea as the fifth largest global manufacturer of automotive parts and components.

Mexico's main advantage over Asia was the diversification of sales, since while the bulk of South Korea's auto parts production is for its assembly plants (such as Hyundai, Kia and SsangYong), Mexico serves several Asian, American and European brands, explained Oscar Albin, president of INA.

Since 2009, the auto parts sector in Mexico has recorded a sustained increase and in 2012 production reached a historic value of almost $75 billion dollars, representing 5.8% of the global auto parts market value, which is estimated at $1.2 trillion dollars.

In the top five auto parts manufacturers, China ranked first with around 25% of the market value, followed by Japan, the United States and Germany.

New challenges

The sustained recovery of the automotive industry in North America and the arrival of new assembly plants in the country favored the growth of auto parts plants established in Mexico and led to the arrival of new manufacturers.

It is expected that with the start-up of new auto parts plants in 2014, this market will reach a value of $90 billion dollars; however, in order to surpass Germany and position itself as the fourth global supplier, the auto parts sector would have to bill $100 billion dollars,

This will only be possible if the domestic market is strengthened, since currently 70% of Mexico's auto parts production is exported, mainly to the United States.

Limiting imports of used cars is key to increase sales of new vehicles in the domestic market and reactivate the demand for auto parts in the country.

Source: http://www.manufactura.mx/industria/2013/04/25/mexico-produce-autopartes-para-todos

By: Ivet Rodríguez