Mexico‘s automotive industry recorded exports for 14,617.4 million dollars in October, representing an increase of 33.8% year-over-year.
With this, this sector had the highest dynamism among the first concepts in which Mexican foreign sales are divided.
In general and during 2021, the main manufactured export products continued to be machinery and electrical appliances, and transportation material, which comprised 58.8% of total exports.
Last October, total exports of products from Mexico were 49,275.3 million dollars, an increase of 17.7%, at annual rate.
Automotive Industry
Mexico’s exports are concentrated in the United States and the automotive sector has been one of the most booming.
Within this sector, the specific rules of origin of the Agreement between Mexico, the United States and Canada (T-MEC) are stricter, as the thresholds for conferring origin are higher, particularly in the case of certain sectors such as automobiles, steel and aluminum.
For example, for many automotive products the Regional Value Content (RVC) was increased from 62.5% in the North American Free Trade Agreement (NAFTA) to 75% in the USMCA.
To obtain origin, automotive producers must use regional aluminum and steel representing 70% of the value of their purchases.
In addition, the metal must be smelted and cast within the territory of one of the parties for origin to be recognized.
The USMCA also establishes a Labor Contained Value (LVC) criterion for granting origin in the automotive sector.
In the first ten months of the year, automotive industry exports totaled 135,975.4 million dollars.
This represents an increase of 19.7% compared to the same period in 2021, according to Inegi data released this Monday.
As for external demand, between July and September, the average value of seasonally adjusted manufacturing exports continued to grow.
This advance is due to both automotive and non-automotive exports.
During the first ten months of 2022, the value structure of merchandise exports was:
87.7% manufactured goods, 7.1% petroleum products, 3.7% agricultural products, and 1.5% non-petroleum extractive products.