Mexico’s Auto Parts Market Slides 5.5% Amid August Recovery

Mexico’s auto parts industry posted a production value of US$78.8 billion from January to August 2025, marking a 5.47% decline compared with the same period last year, according to the National Auto Parts Industry (INA). Recovery signs were evident in August, when output reached US$10.1 billion, returning to 2024 levels.

Electrical components led production, representing 19.2% of total output (US$15.1 billion), followed by transmissions and clutches at 9.8%, seat fabrics and carpets at 9.1%, engine parts at 8.1%, and suspension and steering systems at 6.8%. Collectively, these five categories accounted for more than half (53%) of national production.

The industry’s performance closely mirrors trends in the US automotive market, where vehicle sales in August totaled 1,459,369 units, a 6.38% increase from July, while total production declined 2.58% year-on-year to 6.78 million units. Mexico remains the primary supplier of auto parts to the United States, providing 43.37% of imports, ahead of Canada (10.14%) and Japan (7.58%).

Regionally, Coahuila led production with US$11.8 billion (15%), followed by Guanajuato with US$10.7 billion (13.7%) and Nuevo Leon with US$10.4 billion (13.2%). Chihuahua and Queretaro contributed 8.8% and 7.8%, respectively, with the five states combined accounting for 58.5% of total output. Northern states produced 43.9% of national auto parts, the Bajio region 35.9%, and central Mexico 15.2%.

Exports made up 86.98% of total production, led by the United States (86%), followed by Canada (3.6%) and Brazil (1.1%). Imports came mainly from the United States (52%), China (18.5%), Japan (7.2%), South Korea (6.4%), and Germany (3.9%). The sector’s trade balance remained positive at US$23.6 billion.