Foreign Direct Investment (FDI) in the auto parts industry in Mexico, the fourth largest in the world, could receive $2.0 billion in 2024, which will consolidate its global position.
In 2024, the auto parts production industry in Mexico will remain one of the main magnets for FDI in Mexico, historically the fourth most important in the country, with the arrival of $2.0 billion that will be added to the $37.3 billion of accumulated investment from 2006 to September 2023.
The relocation of companies from Asia to Mexico to serve the North American market will generate an FDI of $2.0 billion in 2024, said in a press conference, the general director of the business chamber Industria Nacional de Autopartes (INA), Armando Cortés.
Data from the Ministry of Economy, analyzed by SteelOrbis, show that the auto parts industry is the fourth most attractive activity in Mexico for FDI. From 2006 to September 2023, the auto parts industry received $37.3 billion, very close to the $39.7 billion in 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.
Cortés said that the new investment will consolidate Mexico as one of the largest auto parts producers in the world. He is currently the fourth biggest player. For this year, the INA expects its members to manufacture auto parts worth $121.7 billion and by 2024 $125.5 billion, the latter representing an increase of $500 million compared to last month's forecast.
The executive predicted that most of the investment will reach the northern part of Mexico and the Bajío region. The northern zone made up of the northern states of Coahuila, Nuevo León, Chihuahua, Tamaulipas and Sonora contribute 43.2 percent of the value of accumulated production from January to October with $43.7 billion.
El Bajío with the states of Guanajuato, Querétaro, San Luis Potosí, Aguascalientes and Jalisco contribute $36.1 billion or 35.6 percent of the total.
From January to October, Mexico exported $77.0 billion of auto parts to the United States, a figure that represented 87.2 percent of the industry's total exports.