Mexico’s National Auto Parts Industry (INA), the fourth largest in the world and the main supplier to the United States, could attract Foreign Direct Investment (FDI) of up to $44.0 billion in the coming years, the general director of the business chamber, Armando Cortes, told SteelOrbis.
“The Ministry of Economy considers around $110.0 billion in investments (FDI) due to the nearshoring phenomenon. They are medium and long term investments. They are multi-year. Of that figure, approximately 40 percent is estimated to be for the auto parts industry. They are investment announcements that we do not know if they are going to materialize or not,” Cortés responded to a specific question from SteelOrbis about the expected FDI.
Cortés said that in 2023 the FDI to the automotive industry was $2.0 billion and by 2024 they expect an investment of the same amount.
As SteelOrbis previously reported, the auto parts industry in Mexico is one of the biggest magnets for FDI. From January 2006 to September 2023, it received $37.3 billion, a figure only surpassed by the $39.7 billion from investment in vehicle manufacturing (light and heavy), the $43.9 billion from the food industry and the $54.4 billion in banks.
In the first 11 months of last year, the auto parts industry in Mexico exported $97.2 billion, of which 87.1 percent or $84.7 billion were sent to the United States. With that figure, Mexico is the largest supplier of auto parts, supplying 42.7 percent of the total imported. It far exceeds the 10.5 percent exported by Canada and just over 7.0 percent exported by China and Japan.