Mexico ranks as the 8th largest vehicle producer in the world, and the automotive sector accounts for 17.6 percent of Mexico’s manufacturing sector.
Automotive Parts and Supplies
A Top Export Prospect for Mexico
Auto Parts Production for OEM and Aftermarket
2009 2010 2011 2012 (est.)
Total Market Size 58.6 69.4 80.2 80.8
Total Local Production 41.2 57.5 66.9 68.0
Total Exports 35.9 37.9 45.1 45.9
Total Exports to the US 32.31 27.7 40.2 41.1
Total Imports 18.5 26.0 31.8 33.1
Total Imports from the US 10.36 16.9 18.4 18.2
Figures in USD billions.
Source: National Auto Parts Industry Association (INA)
Total Number of Vehicles – Automobiles and Trucks
2009 2010 2011 2012 (est.)
Total Units Produced 1,507,527 2,260,774 2,557,550 2,791,292
Total Units Sold in Country 754,918 820,406 905,886 990,175
Total Units Imported 730,000 848,000 873,440 898,440
Total Units Exported 1,223,333 1,859,517 2,143,879 2,427,879
Figures in units.
Source: Mexican Association of Automotive Industry (AMIA), Secretary of Economy and estimates from Business Monitor
Total Value Vehicles – Automobiles and Trucks
2009 2010 2011 2012 (est.)
Mexican Exports of Vehicles to the US 878,742 1,277,184 1,440,481 1,447,425
Mexican Imports of Vehicles from the US 2,351 3,122 3,215 3,308
Figures in USD billions.
Estimates reflect a composite of Transportation and Machinery Office Statistics, US Department of Commerce (OTM)
Mexico ranks as the 8 largest vehicle producer in the world, and the automotive sector
accounts for 17.6 percent of Mexico’s manufacturing sector and 3 percent of its national GDP
contribution. There are currently nine manufacturers in Mexico including General Motors,
Chrysler, Ford, Nissan, Fiat, Renault, Honda, Toyota, and Volkswagen. This manufacturing
base produces 42 brands in 20 manufacturing plants. Nissan and Daimler are considering
Top US Prospects 12: 2 Export in Mexico 20 Automotive Parts and Supplies
opening another manufacturing plant in Mexico to increase passenger car production. Nissan,
GM, Volkswagen, and Honda plan to increase their production in Mexico. Fiat and Mazda are
opening up plants for vehicle production in Mexico.
Mexico produces more than 2.5 million cars on a yearly basis. 83 percent of its production is
devoted to exports and the remaining 17 percent for the domestic market. The National Auto
parts Industry Association (INA) reported a significant increase in the auto parts industry from
2011 to 2012 as per estimates.
In 2011, the Mexican automotive industry experienced a 13.1% percent growth of local vehicle
production due to higher demand, domestically as well as in the United States and other
markets. The countries that Mexico exports to include: United States (64%); Canada (7%);
Latin America (15%); Asia (2%), Europe (10%) and others (1%). Mexican vehicle sales in 2011
increased 10.4% compared with 2010. Market realities have led to new trends in car
manufacturing, including smaller car sizes and increased fuel efficiency.
The aftermarket is expected to increase, as Mexico imposed new duties and requirements on
the importation of used vehicles since 2009. As a result, repairing and maintenance of used
vehicles will require varied parts. In addition, other opportunities exist for U.S. exporters of
spare parts, equipment and new technologies oriented to reduce costs and time. Parts
equipment and first and second-tier components from the United States might experience an
increase in exports as auto production increases in Mexico.
The economic outlook for 2012 is conservative. Mr. Oscar Albin Santos, President of the
National Auto Parts Industry expressed that the auto parts industry might report a production
increase of one percent, an import increase of six percent and auto part export decrease of
4% by the end of 2012.
Furthermore, Eduardo Solis, Chairman of the Mexican Auto Association, acknowledged that
the industry’s situation remains linked to the economy and financial environment and
forecasts a challenging 2012. To increase the demand in new car sales, the industry and the
government will have to work on other strategies to target niches in the domestic market.
The industry is currently working with the government to reduce taxes for purchasing a car,
trade-in car replacement programs, among others. Despite the slow growth in demand and
production, some automotive companies announced large investments in Mexico last year.
This is due to Mexico’s advantage in low labor costs and recent technological development in
the auto industry through design centers. In addition, companies are looking for lower
manufacturing and export costs.
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Top US ospects 3 Export Pr in Mexico 2012: Automotive Parts and Supplies
The greatest opportunities include: spare and replacement parts for gasoline and diesel
engines, electrical parts, collision repair parts, gear boxes, drive axles, catalytic converters,
and steering wheels. In the first and second-tier supply chain sector, opportunities include:
OEM parts and components, precision assembly devices, machined parts, hybrid vehicle
components, suspension systems, and pre-assembly components such as small and progressive
stampings. Other products in demand include electronic components, specialized tooling,
systems that eliminate waste and green technologies such as new combustion systems to
reduce gas emission and oil consumption.
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Despite the economic recovery, lack of financing, high interest rates and competition, the
market has become more price-sensitive. In Mexico, 50 percent of new cars are purchased on
credit. Because of the credit shortage, new car sales have decreased and many consumers
choose to maintain their vehicles for a longer period of time. As a result, President Calderon
eliminated the ownership tax imposed to consumers effective Dec 31, 2011, with the
exception of luxury vehicles. It is now the option of the Mexican state where the car is
purchased to decide whether to charge this tax. Many Mexican states have decided not to
charge this tax. This measure should stimulate the domestic market and the purchasing of
new vehicles. In addition, OEMs located in Mexico will continue implementing strategic
actions such as expanding their manufacturing base and upgrading their brand vehicles with
new technologies to make them more efficient and affordable to consumers.
The large number of used vehicles being driven in Mexico provides opportunities for exports
of repair equipment and replacement parts. Effective January 2009, Mexico imposed a 10
percent duty on imports of used vehicles, which was decreased to 3 percent only for the
border zone in March 2009. In 2012 used cars 8-10 years old can be imported and in 2013 used
cars 6-8 years old can be imported. U.S. companies still face some barriers when exporting
used cars to Mexico.
The most significant requirements include having a Certificate of Origin, and the 10 or three
percent tariff based on a minimum estimated price, or “reference price” for the given year,
make, and model of the car. Importers of used vehicles must post a guarantee representing
any difference in duties and taxes if the declared customs value is less than the established
reference price. Effective November 2011, the Mexican government set up a mandatory
emission control standard for the import of used vehicles. To avoid red tape, U.S. exporters
can attach emission control state certificates from Arizona, California, Texas and New Mexico
as those states show very strict standards which are compliant with Mexican standard 041.
Top US t o 4 Expor Prospects in Mexic 2012: Automotive Parts and Supplies
Therefore, U.S. exporters are advised to work closely with their importers and customs
brokers to ensure that all specific requirements are met.
Participation in Mexican automotive trade shows provides excellent opportunities to introduce
new products and services in Mexico, after appointing regional distributors.
• PAACE Automeckanicka 2012, July 18-20, 2012, Mexico City:
• National Auto Parts Industry Association: http://www.ina.com.mx
• Mexican Association of Automobile Distributors: http://www.amda.org.mx
• Mexican Association of Automotive Industries: http://www.amia.com.mx
• Business Monitor International: http://www.businessmonitor.com
• Global Trade Atlas: http://www.gtis.com
• Office of Transportation and Machinery: http://www.trade.gov/auto
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For More Information
Please contact Monica Martinez, Commercial Specialist for the automotive parts and supplies sector at the U.S.
Commercial Service in Mexico at Monica.Martinez@trade.gov or (011-52-55) 5140-2628. You can also visit our
website at http://www.export.gov/mexico.
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in the U.S. nearest you by visiting http://www.export.gov/eac.
Disclaimer: The information provided in this report is intended to be of assistance to U.S. exporters. While we make every
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International copyright, U.S. Department of Commerce, 2012. All rights reserved outside of the United States.