Queretaro Strengthens Auto Supply Chain With 1,000 Suppliers

Summary: Queretaro is strengthening its role as a key automotive manufacturing hub in Mexico, supported by a 1,003-company supply chain and US$9.3 billion in auto parts production in 2025, with continued growth projected into 2026. The expansion is driven by OEM and tiered suppliers, increasing localization for North American supply chains and rising investment in electrification technologies such as batteries, powertrains, and electronic systems. Automotive and aerospace industries,highlighted by Airbus’ expanded US$34.5 million investment,are reinforcing the state’s position as a diversified advanced manufacturing center amid global supply chain restructuring. 

Queretaro is reinforcing its position as one of Mexico's leading automotive manufacturing hubs, supported by a supply chain of more than 1,000 companies, growing auto parts production and increasing participation in electric vehicle component manufacturing.

According to the 2026 Mapping of the Automotive Industry in Queretaro, the state produced US$9.327 billion in auto parts during 2025, making it the fifth-largest auto parts producer in Mexico with a 7.8% share of national output. Industry leaders expect production to reach US$9.513 billion in 2026, representing year-over-year growth of 2%.

The industry's expansion is being driven by a network that includes original equipment manufacturers (OEMs), Tier 1, Tier 2 and Tier 3 suppliers, as well as companies specializing in raw materials, engineering services and emerging mobility technologies. 

Auto Parts Production Anchors Industry Growth

As vehicle manufacturers seek greater supply chain resilience and regional sourcing opportunities across North America, Queretaro continues to attract investment and strengthen its manufacturing ecosystem.

The state's automotive sector comprises 1,003 companies connected to vehicle manufacturing and component production. The industrial base includes 292 Tier 1, Tier 2 and Tier 3 supplier facilities, 38 raw material providers and more than 410 suppliers of products and specialized services.

This extensive supplier network supports multiple segments of the automotive value chain, ranging from traditional vehicle systems to advanced technologies associated with next-generation mobility.

Industry mapping also highlights the presence of companies producing chassis and body systems, powertrain components, interiors, exteriors, wheels and tires, as well as electrical and electronic systems. Manufacturers specializing in lighting, connectivity, sensors, wiring harnesses, control systems and electronic components are increasingly contributing to the state's higher-value manufacturing capabilities. 

Electrification Creates New Opportunities

While conventional vehicle manufacturing remains a key driver of economic activity, the transition toward electric and hybrid vehicles is reshaping supplier requirements and creating new market opportunities.

Queretaro has developed a growing base of suppliers focused on electromobility technologies, including batteries, electric powertrains, thermal management systems, power control units and other electric vehicle components.

The state's automotive ecosystem currently includes three suppliers dedicated to batteries, capacitors and related components, 16 suppliers specializing in electric powertrains, one power control unit supplier, one thermal management system provider and 18 companies producing other electric vehicle components.

Demand for Evs is also increasing within the local market. Between January 2019 and May 2026, Queretaro recorded sales of 14,106 electrified vehicles, including 2,248 battery electric vehicles (BEVs), 1,884 plug-in hybrid electric vehicles (PHEVs) and 9,974 hybrid electric vehicles (HEVs).

The continued growth of automotive manufacturing in Queretaro is also reflected in rising investment activity, which is expanding production capacity and supporting future industry development.

The state recorded 17 automotive investment projects worth US$239.7 million during 2025. In the first quarter of 2026 alone, an additional 11 projects totaling US$234.6 million were announced.

Airbus Powers Queretaro Operations

Queretaro has also strengthened its aerospace industry with the latest Airbus investment. MBN reported that Airbus has expanded its manufacturing operations in Queretaro with an investment of MX$646.7 million (US$34.5 million), creating 262 new jobs and increasing production capacity for aircraft doors and helicopter components. The expansion supports the company’s strategy to meet growing global demand for commercial aircraft and achieve its production target of 70 to 75 aircraft per month by 2027.

The investment comes as the aerospace industry faces ongoing supply chain challenges. According to the International Air Transport Association (IATA), delays in aircraft and component manufacturing have contributed to a global backlog of more than 17,000 commercial aircraft, significantly above historical averages. These production constraints are expected to cost airlines more than US$11 billion in 2025 as they continue operating older fleets while awaiting new deliveries.

State and company officials highlighted the strategic importance of Queretaro within Airbus’ global manufacturing network during the inauguration ceremony. Marco Del Prete Tercero, Queretaro’s Minister of Sustainable Development, said the investment reinforces Airbus’ confidence in the state and strengthens one of its most important industrial sectors. He emphasized that the aerospace cluster has become a key driver of economic development, workforce training, supply chain growth, and job creation, helping position Queretaro as a leading aerospace manufacturing hub in Mexico and Latin America.

Ricardo Capilla, President, Airbus Mexico, noted that the Queretaro facility has expanded far beyond its original scope and is now four times larger than initially planned. He said the expansion will help support production of the Airbus A320 family, which has accumulated approximately 19,000 orders and more than 12,000 deliveries since launch.

To support higher production volumes, Airbus is introducing advanced manufacturing technologies, including an Automated Outer Skin Riveting Center capable of performing more than two million preparation operations annually. Additional investments include high-precision hinge preparation equipment and advanced measurement systems designed to improve efficiency, quality control, and production accuracy.