Auto manufacturing in Mexico is growing and depends on imported inputs

The vehicle and auto parts industry occupies a prominent place in the Mexican economy, contributing almost 30% of the country’s total exports according to the Mexican Institute for the Competitiveness (IMCO) in his study “Industrial Policy for the New Six-Year Term”.

Importation of parts

He National Added Value generated by export activity reveals a high proportion of imported intermediate consumption in the sectors that have a greater share in exports.

This reflects a greater connection with the outside world than with the national productive fabric and, consequently, a lower potential for the export sector in Mexico have a multiplier effect on regional and local economies.

According to data from the IMCOin 2022, the auto parts sector demonstrated a strong dependence on imported inputs, since 61.3% of its global manufacturing production value consisted of imported inputs. On the other hand, the bodywork manufacturing It stood out even more in this regard, since more than 70% of its global production corresponded to imported inputs.

These sectors are essential components in the automobile and truck production chain, which registered a requirement for imported inputs of 52.6%.

Increase

In the analysis carried out by the IMCO It was revealed that since 2003 there has been a constant increase in the participation of imports in the production of vehicles, bodies and trailers, which has gone hand in hand with the establishment of new brands in Mexico, both from Asia (KIA) and Europe. (Audi and BMW).

This pattern reflects the growing integration and dependence of the Mexican automotive industry on the global economy, marking a trend towards globalization and interdependence in the global supply chain. automotive supply.

This percentage has not changed significantly since 2003, when it reached 40.2%, while the record figure was recorded in 2015, with 44.1%. The results make it clear that the manufacturing export sector has not managed to increase its local supply in the last two decades, both in terms of goods and intermediate services.

However, there are sectors, such as vehicle production, in which national content tends to be higher due to the requirements established in the USMCA to obtain the designation of origin and access preferential tariff treatment.

Global impact

When analyzing the VAEMG in the different branches of the manufacturing industry that are part of global value chains (GTC), it is observed that 66.4% of the total VAEMG contributed by Mexico to global manufacturing production is generated in only ten of them.

The automobile and truck manufacturing sectors stand out, generating 24.8% of the added value, as does the manufacturing of parts for motor vehicles, which contributes 18.2% of the added value in Mexico.

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I graduated with a degree in Communication Sciences from the Universidad Autónoma de Occidente (UAdeO), with an emphasis on mass media. I currently have six years of experience in news media, web portals, content development for social networks, radio, live television, and local and state print newspapers. I joined the printed newspaper Vivavoz in the municipality of Culiacán as a local reporter in 2015. Later, I wrote different news and research content for the state weekly NN Noticias Sinaloa, for a period of three years, followed by my entry into the live television news program De Vivavoz, as well as collaborating with news notes for the radio edition of the same company, which is broadcast daily. Likewise, I have managed the web pages of each of the media in which I have worked, and I am currently a reporter for the Local section of the newspaper EL DEBATE DE CULIACÁN, which I joined in 2019.

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