Mexico Auto Parts Output Up 10% to US$52.9 Billion Through May

Mexican auto parts production expanded 10% during the first five months of 2026 to reach US$52.878 billion, driven by sustained demand in the United States and double-digit growth in electrical components and gasoline engines, according to data released by the INA.

The accumulated output brings the manufacturing sector close to its historical record of US$53.081 billion set during the same period in 2024, following a period of moderation in 2025. Monthly production in May reached US$10.905 billion, representing a 6.9% increase compared to May 2025.

"After a few months of moderation in 2025, this year, auto parts manufacturers are practically returning to record production levels in the sector with a double-digit growth rate," said Gabriel Padilla, general director, INA, during a press conference.

Padilla attributed the performance to stable assembly and sales figures in the US market, noting that US vehicle production held at 856,000 units in June with sales reaching 1.37 million units, a sales pace that continued through July.

Component Breakdowns and Manufacturing Hubs

Five product categories accounted for 52.4% of Mexico’s total auto parts production from January through May. Electrical components formed the largest product category, generating US$10.339 billion, a 19.6% share of national output, and growing 11.40% year-over-year.

Gasoline engine production posted the strongest rate of expansion among top categories, rising 39.17% to US$3.264 billion (6.2% of national production). Transmissions and clutches generated US$5.026 billion (9.5% share, up 4.26%); fabrics, carpets, and seats accounted for US$4.843 billion (9.2% share, up 10.25%); and engine parts contributed US$4.249 billion (8% share, up 8.21%).

"This means that technological diversification in vehicle production is not moving in a single direction; that is, not only is the production of electric and hybrid vehicles growing, but also the production of gasoline vehicles," Padilla explained.

Production remained heavily concentrated by geography, with 10 states generating 87% of national output. Coahuila led state production at US$8.305 billion (15.7% share, up 12.63%), followed by Guanajuato at US$7.150 billion (13.5%) and Nuevo León at US$6.958 billion (13.2%). Regional output was led by the Northern Zone at US$23.298 billion (up 8.67%), the Bajio region at US$19.009 billion (up 9.84%), and the Central Zone at US$7.855 billion (up 9.18%).

International Trade and U.S. Market Integration

Between January and May 2026, Mexico recorded US$45.994 billion in auto parts exports and US$30.669 billion in imports, yielding a sector trade surplus of US$15.324 billion. The United States received 86.9% of Mexican exports, followed by Canada (2.7%), Brazil (1.1%), South Korea (0.9%), and China (0.7%). Conversely, imports originated primarily from the United States (47.2%), China (15%), Japan (6.8%), and Germany (6.5%).

In the broader US import market, overall US global auto parts purchases contracted 0.89% during the first half of 2026 to US$92.824 million. However, US imports originating from Mexico rose to US$41.520 billion, expanding Mexico's market share of US auto parts imports to a historic high of 44.73%, up from 43.74% in 2025 and 29.82% in 2007.

"Mexico is not only continuing to be the main supplier of auto parts to the United States; our market share within that market has strengthened structurally over the last two decades. The United States has shifted its supply needs in favor of parts manufactured in Mexico," Padilla stated.

Broader Automotive Context

While component manufacturing expanded, finished vehicle metrics showed divergent trends. The AMIA reported a 2.2% decline in finished vehicle assembly for July, totaling 302,673 units, alongside a 9.7% drop in vehicle exports to 261,534 units. From January through July, Mexican vehicle exports to the US fell 4.5% (though the US remained the top destination at 76% of vehicle shipments). Exports of completed vehicles to Germany, Argentina, Japan, and the United Kingdom also declined, while shipments rose to Canada (+16.6%), Colombia (+26%), Brazil (+128%), and El Salvador (+1,129%).