Mexico targets automotive supply chain investment

The automotive industry in Mexico is identifying significant opportunities to substitute imports and strengthen its supplier network, particularly in specialized sectors such as electronics, semiconductors, and raw materials.

Industry representatives note that the reorganization of North American supply chains, driven in part by United States trade restrictions on Asian products, is increasing demand for local suppliers. Gabriel Padilla, director of the Industria Nacional de Autopartes (INA), highlighted that while Mexico holds a relevant position in the North American automotive chain, it faces the challenge of deepening its supplier network.

Currently, Mexico’s supply base consists of approximately 2,135 auto parts companies and over 700 suppliers. However, the structure is heavily concentrated at the Tier 1 level, which accounts for 60 percent of the supply. Tier 2 suppliers represent 31 percent, while Tier 3 suppliers make up only 8 percent. Strengthening these deeper levels is considered strategic for securing essential components like electronic parts and specialized tooling.