Nearshoring Triggers High Demand for Auto Parts

Stringent rules of origin, which establish that 75% of all essential auto-parts must be provided by regional businesses, have launched a hunt for suppliers in the country. “The highest nearshoring demands are concentrated in the metal-automotive sector,” said René Mendoza, National President, Mexican Industry Supplier Chain.

Between May 31 and June 1, 2023, the state of Queretaro will host the International Automotive Industry Supply Summit Mexico 2023, an event that seeks to provide a space for networking between manufacturers, suppliers and companies from all over the world. Mendoza highlighted that after reviewing the purchasing requirements registered for the summit, it was detected that three out of five requests are directed to the metal-automotive sector. The main requirements registered focused on transmission parts, harnesses, metalworking, forging, casting, surface finishing, machining and plastic injection. There is also a big demand for aluminum injection, molds, dies and laminates.

Marco Antonio Del Prete, Minister of Sustainable Development, SEDESU Queretaro, stressed that Querétaro has excelled as one of the main auto parts manufacturers in the country. “Queretaro produces seven out of 10 auto parts in Mexico. Even without an OEM, it occupies second place in national production,” said José Luis Cámara, President, Industrial SME Association of Queretaro. 

"This will be the largest B2B meeting in Mexico, with the participation of more than 100 major buyers including:  Stellantis, Kia, Ford, BMW, Honda, Bosch, BRP, Continental, ZF, Borgwarner, Kenworth, John Deere, Martinrea, Eaton, Foxconn, Caterpillar, Marelli, Visteon, Vitro, Brose Rassini, Hitachi, Magna, Valeo and Tremec, among others," stated Bustamante.