Given the announcement by Elon Musk, CEO of Tesla , to pause the installation of the Gigafactory in Santa Catarina, Nuevo León, the National Auto Parts Industry (INA) reacted through a press release, indicating the robust growth it is experiencing the auto parts sector in North America.
Regarding Tesla’s decision, the INA expressed in its statement that “it is necessary to emphasize that at all times it has been and continues to be a project. The eventual realization of business decisions will depend on specific conditions, such as the behavior of demand for electric vehicles worldwide, as well as the market share that each company has in an increasingly competitive environment.”
The INA stressed that the auto parts industry in North America is experiencing exceptional growth and in Mexico there was a historic production that is expected to exceed 126 billion dollars (mdd) by the end of 2024, maintaining the country as the fourth largest global producer and the main supplier in the United States.
Regarding the integration of the supply chain in North America, they assured that it is evident in the significant US investment in the auto parts sector in Mexico.
According to the INA statement, between 1994 and June 2024, the United States invested in 391 auto parts companies in Mexico , which represents 33% of the total foreign investments in this sector during that time. By comparison, Japan, the next largest investor, contributed 16 percent.
Likewise, for the National Auto Parts Industry, the robustness of the supply chain in North America and Mexico is not based on specific events or external decisions, but on the competitiveness and strength of both countries. Mexico plays a key role in the competitiveness of the United States, and vice versa.
Regarding electric vehicles , Mexico already has more than 100 suppliers that send components to companies in California such as Tesla, Arizona and Illinois.
In this context, the INA reaffirmed the continuity of North America as an integrated, competitive and promising region for auto parts companies on both sides of the border.
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