The automotive sector in Mexico is experiencing encouraging times that, according to various projections, will continue at least until 2030. During this period, constant growth in the production of auto parts is also expected.
Carlos González, general director of Hultek , a company specialized in the supply of rubber parts for different industries, indicated that auto parts alone receive more than 30% of the total Foreign Direct Investment (FDI) that reaches the Mexican automotive market, Therefore, it is an opportunity to promote small and medium-sized companies (SMEs) in the sector and accelerate their development.
According to company information, in the last three years, Hultek’s catalog has grown significantly for the automotive industry, due to the great demand expressed by car manufacturers in both Mexico and the United States.
The auto parts sector anticipates that this year FDI will be two thousand 300 million dollars (million dollars) , from two thousand 100 million dollars in 2023, however, projections such as that of EngenCapital indicate that FDI in auto parts could exceed eight billion dollars at the end of 2030.
“To reach these figures we need the industry in Mexico to mature rapidly: the automation processes in the plants and the certifications required to be a supplier to the sector be integrated as soon as possible,” González explained.
The Hultek specialist points out that both automation and certifications will be challenges for more than 70 and 85% of SMEs, respectively.
Commenting on whether this is an achievable objective, González is confident that there is enough market to triple FDI in the coming years.
“There are two big reasons that can bring this to reality for the auto parts industry: firstly, electrification requires, at least from some Tier 3 manufacturers, increasingly lighter parts, with high-specification compositions and designs and a greater number of SKUs,” he commented.
On the other hand, he pointed out that it will be important to see the development of Chinese shipowners in the country.
Currently, only JAC Motor assembles cars in Mexico, while other firms, such as BYD and Chirey , have expressed their intention to have production lines in Mexico.
“The arrival of Tesla will also bring benefits and Chinese supplies to Mexico, so it will be essential for local suppliers and SMEs to promote the development of Mexican plants so as not to miss this great opportunity to attract new customers,” González acknowledged.
Given the increase in sales of electric vehicles and firms of Chinese origin, Hultek also anticipates that the after-sales market will be important to develop in the country, even if the cars are not assembled in Mexico.
“Some manufacturers are going to take the option of having suppliers of specific parts in the Mexican market, even if they do not have a production plant here. It will be to serve the spare parts market,” González concluded.
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