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Mexico expects auto parts production to reach $125.7 billion in 2024, up from 2023

Thursday, 07 March 2024 22:03:07 (GMT+3)   |   San Diego
       

The National Auto Parts Industry (INA), the fourth largest in the world, estimated a conservative and marginal increase in its production estimate for 2024 of 3.7 percent, compared to the historical record of 2023 with $121.2 billion. In 2024 it would be $125.7 billion, according to a report from the business chamber.

In December of last year, the value of auto parts production in Mexico broke the $10.0 billion mark it recorded in the last seven consecutive months. In December, the value was $9.3 billion, up 8.2 percent year-over-year. The historical record was recorded in August 2023 with $10.7 billion.

In 2023, production for export increased 18.3 percent to total $105.6 billion, production for the domestic market grew 5.7 percent to $15.6 billion. The forecast for 2024 is $109.9 billion in exports, 4.1 percent more than in 2023. That amount of international sales will represent 87.4 percent of the total.

For the current year, the domestic market will consume $15.8 billion of auto parts, 1.4 percent more than in 2023. The share in the total will be 12.6 percent.

Of the total production, almost half was concentrated in four states. The Mexican capital of auto parts is Coahuila with 15.2 percent, ($18.5 billion), followed by Guanajuato with 13.1 percent, ($15.9 billion), Nuevo León with 12.2 percent, ($14.8 billion) and Chihuahua with 8.8 percent ($10.6 billion). Querétaro stands out for its proximity to $10.0 (it manufactured $9.6 billion in 2023).

In foreign trade, the balance of trade of the auto parts industry was a surplus of $37.3 billion, 8.5 percent more than in 2022. Exports totaled $105.6 billion, 18.3 percent more and imports totaled $68.2 billion, 24.5 percent more.

With this level of exports, Mexico is the largest supplier of auto parts to the United States, accounting for 42.6 percent of the total, a market share that far exceeds the second largest supplier, Canada, with its 10.5 percent and compared to the 7.7 percent of China's participation.


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