Mexico imports auto parts worth $60,000 million, with the United States, China, Japan, South Korea and Germany being the main importers. At the automotive supplier event, Tier 2 suppliers will be seeking to reduce imports of components by 30% in order to increase regional content, said Manuel Montoya Ortega, general director of the Nuevo León Automotive Cluster.
“The output value of auto parts in the country is $107,000 million. The National Auto Parts Industry has projected a growth of 1.22%; My guess is that it’s a bit conservative (the data). It is a significant number, as it is the largest industry in the country”, he stressed at a press conference.
In context, he said the completion of the grace period to incorporate the percentage represented by T-MEC of regional content in the automotive industry is one-and-a-half months away. “We have a national content of 25% in Nuevo León, probably the most integrated state we are in, continuing to integrate national content is a challenge, cars produced in Mexico have more content than before the pandemic.”
Four years after T-MEC, in auto parts, exports from Mexico were 90,000 million dollars and imports were 60,000 million dollars, that is, there is a surplus of the auto parts industry of about 30,000 million dollars, this is the sector that generates more foreign exchange, he insisted.
87% of auto parts exports go to the United States, Canada 4%, and other markets, while imports vary slightly more, with the United States being the main supplier of auto parts and components to Mexico, followed by China, Japan, South Korea and Germany.
“Well (we have to see) how to reduce that percentage which is 30% of Mexico’s imports today, that’s the challenge in the automotive supplier event how can we replace the imports coming from those countries. Tier 1 companies It is needed to get more regional content”, insisted Manuel Montoya.
In a virtual press conference, the Nuevo León automotive cluster, led by its president Ramiro Monteiro, revealed that the automotive supplier event will take place on June 6 and 7 at Cintermex, alongside the Mobility of the Future event in the Americas.
On the other hand, Manuel Montoya said that the challenge for second level or Tier 2 supplier companies is to provide stamped parts for the column system, parts for the gearbox, engine parts and seat sub-parts. Because there is an opportunity to increase regional content.
Wanted
He pointed out that last year there were 70 purchasing companies at the automotive supplier event. “There were more than 30 companies in aluminum injection that requested suppliers and only found 6 suppliers; Mechanized was more balanced; We did not have low-pressure aluminum castings, and in hot and cold forging we had 22 companies that asked us for it and we only had 5 suppliers, that is, we need a lot of supplies”, stressed the manager.
“Today is a great opportunity, we need more suppliers to come and bring in the components that we are importing today. Finally, cars are being produced with imported components, to overcome this problem. For this we at CLAUT are following the same strategy. We have many years back established OEMs and Tier 1, there are also new players in the electric vehicle industry, however, the base of the Tier 2 pyramid is insufficient”, he emphasised.
He highlighted that among the participants of the Automotive Suppliers Expo will be a delegation from Quebec, specialized in aluminum processes, who would like to meet with potential suppliers as they evaluate establishing themselves in Mexico.
To this, he remarked, we must add nearshoring, which means bringing more industry from Asia,” The Inter-American Development Bank (IDB) estimated the size of the business at $35,000 million that comes to Mexico. , In addition to the statistics of the automotive industry.
