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Mexican FDI from nearshoring in auto parts could reach $8.0 billion

Wednesday, 24 January 2024 22:34:16 (GMT+3)   |   San Diego
       

The trade differences between the West and the East could relocate auto parts companies to Mexico with $8.0 billion in Foreign Direct Investment (FDI), which will consolidate the country's global position, the Mexican press reports citing the president of the business chamber Industria Nacional. of Auto Parts (INA), Francisco González.

A couple weeks ago, the general director of the INA, Armando Cortés, told the media that the expected FDI in the auto parts industry in Mexico would be $2.0 billion in 2024. The media that published Francisco González's words failed to indicate in which period Mexico could receive the $8.0 billion in FDI.

This investment will be added to the investment of $37.3 billion accumulated from 2006 to September 2023, as recently reported by SteelOrbis.

Investment in auto parts is very close to the $39.7 billion FDI for vehicle and truck production. In third position with $43.9 billion is the beverage industry and in first place is commercial banking with $56.4 billion, according to data from the Ministry of Economy.

So far, the forecast for the value of auto parts production in Mexico for 2024 is $125.5 billion.

Data from the National Chamber of the Iron and Steel Industry (Canacero) indicate that the automotive industry is the second largest consumer of steel in the country. In the first 11 months of 2023, 26.3 million metric tons (mt) of steel were consumed in Mexico, 14.3 percent or 3.3 million mt more compared to the same period in 2022.


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