Mexico’s auto parts sector saw a significant boost in Foreign Direct investment (FDI) during the first half of 2024, with a 15.09% increase to $1.634 billion, according to the National Auto Parts Industry (INA). Germany emerged as the leading investor, contributing 47.3% of the FDI, followed by Japan with 20.2% and South Korea with 11%.
The State of Mexico attracted the largest share of this investment at 16.95% followed by Chihuahua (13.59%) and Querétaro (11.16%). Since 2006, total FDI in the sector has reached $37.304 billion, with Germany investing $7.801 billion.
In terms of production, the sector’s value grew to $63.336 billion in the first half of 2024, up 6.57% from the previous year.
Annual production is projected to reach $126.146 billion. The production of electrical parts increased by 19.66%, reflecting rising demand for advanced vehicle technologies.
Mexico remains the largest supplier of auto parts to the U.S., with 43% of its exports going to its northern neighbor. Overall, Mexico’s growing FDI and production underscore its vital role in the global auto parts market.
