Mexico’s Auto Parts Hit by Tariffs, Output Down 8.6% YTD

Mexico’s auto parts industry recorded a mixed performance in early 2025, with production rebounding in May but remaining below 2024 levels due to the impact of US tariffs on steel, aluminum, and copper. According to the National Auto Parts Industry (INA), Mexico produced US$48.45 billion in auto parts from January to May 2025, down 8.6% from US$53.02 billion in the same period of 2024.

“The uncertainty in the US market, combined with increased costs from tariffs, is causing a contraction that we expect to continue toward year-end,” said Gabriel Padilla, Director, INA. He also explained that Mexico remains the largest auto parts supplier to the United States, but economic and trade uncertainty in that market has reduced demand from both original equipment manufacturers and the aftermarket. 

The most affected segments are those with a high content of steel, aluminum and copper, where the 50% tariff increase has significantly raised material costs. “This has an immediate impact on prices and delivery times for auto parts,” Padilla explained. INA data shows that the top five product groups exported to the United States posted double-digit declines in early 2025: electrical parts such as harnesses, transmissions and clutches, textiles and seats, engine parts and suspension systems.

Despite the drop, Mexico supplied 43.48% of US auto parts imports from January to June 2025, the highest share on record, surpassing Canada, China and Japan.

In May 2025, monthly production increased 5.05% compared to April, reaching US$10.23 billion, supported by higher vehicle production and sales in the United States. INA estimates that June output could exceed the year’s monthly average of US$9.69 billion.

From January to May, Mexican auto parts exports totaled US$42.22 billion, with 87% shipped to the United States and 3.5% to Canada. North America remains the primary trade bloc for the sector. Imports for the same period reached US$27.71 billion.

• The largest production segments in the first five months of 2025 were:

• Electrical parts – US$9.3 billion (19% of total)

• Transmissions, clutches and related parts – US$4.82 billion

• Fabrics, carpets and seats – US$4.37 billion

• Engine parts – US$3.93 billion

• Suspension and steering systems – US$3.3 billion

Production was concentrated in Coahuila (15%), Guanajuato (13.7%), Nuevo Leon (13.3%), Chihuahua (8.7%), and Queretaro (7.8%). Regionally, the north accounted for 44.1% of national output, the Bajio region for 35.9% and the central zone for 15.1%.