Mexican Auto Parts Sector Achieves Record $86 Billion in Sales This Year, According to Reuters

By Luis Rojas

MEXICO CITY – Mexico’s auto parts industry is anticipating record sales this year, projected to reach $86 billion, thanks to a depreciating peso that has increased export competitiveness in the United States.

Oscar Albin, president of the National Auto Parts Industry (INA), stated that the anticipated record sales for 2016 would signify up to a 4 percent growth compared to the previous year. However, he expressed concern that the growth rate may slow in the coming years due to declining demand from U.S. buyers.

"We are hitting the ceiling, and while the United States continues to purchase cars, there’s a limit," Albin noted. "Looking ahead, we aim to maintain these figures and perhaps achieve one or two additional percentage points of growth."

As the world’s fifth-largest producer of auto parts, Mexico exports over 70 percent of its production, primarily to the United States.

The Mexican peso has depreciated approximately 10 percent against the U.S. dollar this year, adding to a nearly 17 percent decline in 2015.

"You need to seek out other markets," Albin mentioned. "Brazil was once a strong market for us, but now we are only selling a third of what we previously sold there."

In the medium term, Albin projected that Mexico’s local auto parts industry could surpass $100 billion in sales by 2020, potentially elevating the country to fourth among the world’s top producers, alongside Germany.