Automotive Exports Grew by Over 40 Percent in AugustBy Sofía Garduño | Tue, 09/27/2022 - 16:45
In August 2022, Mexican automotive exports grew by 42.5 percent year-over-year, surpassing the growth of other manufactured exports and setting a record for the year, reported INEGI.
Altogether, exports of manufactured products increased by 0.97 percent month-over-month due to the 8.65 percent growth of automotive exports and the 2.48 percent contracture of non-automotive manufacture exports.
In general, Mexican exports grew by an annual rate of 25.2 percent and reached US$50.67 billion. From these, US$47.46 billion are attributed to non-oil exports and US$3.22 billion to oil exports. Over 80 percent of non-oil exports, automotive products included, headed to the US market.
Total automotive exports represented US$15.25 billion. The increase in these exports was a result of a 40 percent increase in sales to the US. “Mexico is the largest export market for US automotive parts and the fourth-largest producer of automotive parts worldwide generating US$94 billion in annual revenues,” says the US Department of Commerce. Mostly, the US Commercial Service Mexico is interested in OE parts, aftermarket and EV parts.
“We are the main auto parts supplier for the US, as 36 percent of US auto parts imports come from Mexico. For over 25 years, we have supplied the US with auto parts and during the past 10 years, we have also supplied auto parts for EVs. We know the market,” said Alberto Bustamante, Director General, INA, to MBN.
In August 2022, imports reached US$56.17 billion, which represented an annual increase of 27 percent. Non-oil imports increased by 24.1 percent, while oil imports increased by almost 50 percent. Consumer goods imports reported the highest annual growth.
INEGI reports that the trade balance resulted in a commercial deficit of US$5.50 billion. In July, a US$5.96 billion deficit was reported. The reduction in the deficit of the trade balance was caused by the combination of a lower deficit in the trade balance of non-oil products and a higher deficit in the balance of oil products. During the first eight months of 2022, the trade balance presented a deficit of US$24.4 billion.