IAISS 2023: Boosting Mexico's Automotive Industry
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IAISS 2023: Boosting Mexico's Automotive Industry

Photo by:   Carlos Aranda
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Fernando Mares By Fernando Mares | Journalist & Industry Analyst - Mon, 05/08/2023 - 17:52

With the International Automotive Industry Supply Summit Mexico 2023 (IAISS 2023) just three weeks away, authorities from Queretaro, along with INA, the Automotive Cluster of Queretaro and the Chain of Industry Suppliers of Mexico (CAPIN), announced that the event has completely sold out. At the time of writing, organizers have received over 720 intents of purchase, which are expected to benefit suppliers from Queretaro and all of Mexico. 

According to Marco Del Prete, Queretaro's Minister of Sustainable Development, the state is the third-largest producer of auto parts when compared to other states with assembly plants and the largest producer when compared to states without assembly plants. "We are celebrating this event because the automotive industry has allowed us to grow the state's economy, making it a significant player in the industry," said Del Prete.  

René Mendoza, National President, CAPIM, mentioned that owing to USMCA’s local content requirements of 75% and the increasing logistics costs from Asia, the industry has entered a “Mexican supplier hunting” phase. This explains how the event reached 720 intents of purchase valued at over US$721 million. 

Mendoza highlighted that big assemblers represent 65% of the demand and that three out of every five of these requirements are from the Mexican metal-metallic sector, which is a great opportunity for Queretaro and the Bajio region. However, Esteban Villaseñor, President, Queretaro Automotive Cluster, pointed out that the event is not limited to only the manufacturing and metal-mechanic sectors, but also other areas like R&D and services such as accounting. “This is an important event to boost a key industry for Mexico and Queretaro,” he added. 

Mendoza mentioned that companies are looking for providers with ISO 9001 and IATF certifications. Companies are also looking for suppliers with revenues above US$4 million and that have integrated secondary services. Above all, the essential requirement is that suppliers have operations in Mexico. 

Alberto Bustamente, Director General, INA, mentioned that nearshoring will bring great opportunities for the whole country and among the biggest winners will be auto parts manufacturers, furniture manufacturers, machinery and tools and electronics and home appliances companies. He also mentioned that the countries with the highest demand for nearshoring activities are China, the US, Japan, Germany and South Korea, among others.

Photo by:   Carlos Aranda

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