Mexico breaks record in Chinese auto parts imports
Mexico set a record in its imports of Chinese auto parts in 2022, with a total of 3.837 billion dollars.
According to data from the World Trade Organization (WTO), Mexico was the third largest importer of auto parts in the world in that same year, with 29.472 billion dollars.
The United States (86.226 billion dollars) and Germany (39.667 billion dollars) were ahead of Mexico.
Mexican imports of Chinese auto parts (heading 8708) grew from 833 million dollars a decade ago, in 2012.
With this, China was its second largest supplier, below the United States, who sent auto parts to the Mexican market for 15.464 billion dollars in 2022.
Auto parts imports
After falling 12% in 2020 (the year of the Covid-19 pandemic), Mexican purchases of auto parts originating in China registered a year-on-year growth of 50% in 2021 and then 22% in 2022.
According to Magna International, a Canadian auto parts company, China, Europe, North America, Japan, India and South Korea represent the world’s largest auto production markets, accounting for approximately 88% of the vehicles produced globally.
China’s approximate 32% share of global production led all markets in 2022, followed by the United States and Japan, with shares of 12% and 9%, respectively.
Local demand for vehicles in China, India and certain markets outside North America and Western Europe has increased over time.
Electric vehicles
This increase in local demand has helped boost the local automotive industry in these countries and has attracted manufacturing investments from North American, European and Asian automakers, through stand-alone investments and/or joint ventures with local partners.
In the case of China, Magna International refers that the increasing migration of component and vehicle systems design, development and engineering, especially for battery electric vehicles, is expected to further benefit the automotive industry in that market.
The auto parts industry is characterized by diverse and fragmented competition and comprises a large number of parts and used parts suppliers of all sizes, ranging from large multinational corporations serving both OEMs and the global aftermarket to small local companies. entities that have a more limited supply.
