Mexico Emerges as Auto Parts Powerhouse

Gear up! Mexico has become a major player in the automotive industry, ranking as the world`s fourth-largest manufacturer of auto parts and accessories. Not only that, it`s the seventh largest car producer globally. This powerhouse puts its parts to good use too, with a whopping 90% exported, making it the top supplier to the United States.

The North American market is experiencing significant growth thanks to the USMCA agreement implemented in July 2020, which has spurred investment in the Mexican auto sector and attracted manufacturers worldwide. Taiwan, one of the top five investor countries, exemplifies this trend. According to Taiwan`s Ministry of Finance, Taiwan`s exports to Mexico reached 1.81 billion U.S. dollars from January to April 2024, marking a record high for this period and representing a 31.8% annual increase. Over the past five years, Taiwan`s exports to Mexico have surged by 90%.

In 2023, Mexico is set to officially surpass China as the top U.S. importing country, leading to substantial investments in automobiles, electronic parts and components, and semiconductors. By investing in Mexico, companies can take advantage of trade preferences when selling final products to the U.S. This strategic position has made Mexico the biggest beneficiary of the China–United States trade war, effectively doubling its benefits as the gateway to the U.S. manufacturing industry.

INA PAACE Automechanika Mexico stands as the most significant automotive trade show for the automotive industry in Mexico and Central America. Held annually in Mexico City, this premier event attracts thousands of attendees from across the automotive sector. According to data from the organizer, the 2023 edition welcomed over 27,000 visitors from 39 countries, showcasing its global reach and influence.

In 2024, the show will feature several product groups for exhibition, including Automotive Parts & Systems, Accessories & Tuning, Repair & Maintenance, IT & Management, and Service Station. This diverse range of categories highlights the comprehensive nature of the event, catering to all aspects of the automotive industry.