Mexico’s Auto Part Market Broke Pre-Pandemic Records: INA

Mexico’s automotive industry continues to grow, with auto part production hitting an all-time high of US$107 billion in 2022, reports the National Auto Parts Industry (INA) association. The sector is also forecasted to reach US$109 billion in 2022 and US$110 billion in 2023, according to the association.

During 2022, Queretaro created over 13,000 new jobs thanks to 46 investment projects. Meanwhile, Kostal Group and Lear Corporation announced new expansion plans in Queretaro and Zacatecas, respectively. 

Ready? This is the Week in Automotive!

Queretaro Received Over US$1.1 Billion in Investment in 2022

The state maintains its place as one of the most important regions for the manufacturing industry. This year, Queretaro closed 46 new investment projects, a 48.8 percent increase when compared to 2021. The state brought over US$1.1 billion in investment, generating more than 13,000 jobs. 

According to Marco Antonio Del Prete Tercero, Minister of Sustainable Development of Queretaro, the state has 65 investment proposals at the door, most of them belonging to the automotive industry. "Talks have been initiated with many companies in terms of coming to invest. We have European investment projects... also some Chinese ones,” said Del Prete.

Find out all the details here. 

Lear Corporation Announces US$8.2 Million Expansion

The US Tier 1 company announced a plan to expand its production plant in Zacatecas, thanks to a US$8.2 million investment to manufacture car seat covers that will create 600 new jobs. 

Rodrigo Castañeda Miranda, Zacatecas Minister of Economy, highlighted the role of the region’s government in boosting the state’s manufacturing industry, which employs over 42,000 workers and represents 11 percent of the state’s GDP. 

Read the complete article. 

Kostal Group to Expand Plant in Queretaro

The German company announced the construction of its fourth manufacturing plant in Mexico, which will be the company’s first “Power Electronics” facility in North America as Kostal Group seeks to meet the increasing demand for EV components in the region. 

The new 41,000 square-meter plant will enable Kostal Group to fulfill customer’s production needs in North America, said Harry Asher, CEO, Kostal Group North America. "We are responding to the rapidly growing market and will be ready to supply integrated energy solutions to our original equipment manufacturer customers and their consumers," added Asher. 

Check out the statements. 

Mexico’s Auto Part Production Hist All-Time High: INA

Mexico’s auto part production will reach a record high of US$107 billion in 2022, a 12.6 percent increase when compared to 2021 and even surpassing pre COVID-19 pandemic levels, forecasts INA. 

Alberto Bustamante, Director General, INA, highlighted that the organization expects for the auto part market to keep growing, reaching US$109 billion in 2023 and surpassing US$110 billion in 2024. The sector is expected to keep growing. “In recent months, over US$10 billion in Foreign Direct Investment (FDI) has been announced, which will be reflected in the first months of next year,” said INA. 

Read the full statements.