The National Auto Parts Industry (INA) highlighted the importance of strengthening the productive integration of the North American region , preserving stable trade rules, and ensuring conditions of certainty for investment, after the United States Supreme Court determined that Donald Trump, President of the United States, does not have the power to establish tariffs by invoking the International Emergency Economic Powers Act (IEEPA), thus nullifying most of the generalized tariffs that the White House occupant has promoted in his second term.

Widespread trade measures, such as the tariffs imposed by the northern neighbor, tend to generate cascading effects throughout the value chain, particularly in a sector where logistical synchronization and cross-border efficiency are crucial , the INA stressed in a statement.

It is worth remembering that after the US Supreme Court ruling, Trump announced the imposition of a new global tariff of 10%, which later rose to 15% , based on Section 122 of the Trade Act of 1974 and anticipated the potential use of other tools such as section 232 (steel, aluminum, automobiles and auto parts), and 301 (products originating in China).

According to the Association of Logistics & Forwarding Agents (ALFA) , the tariffs established under the IEEPA law will no longer apply starting February 24. ALFA noted that there are still no official rules on how or when refunds would be issued, if applicable, and added that sections 232 and 301 remain unchanged in normal customs operations.

The INA stated that in the automotive industry, the lack of certainty not only raises costs, but also introduces frictions that can translate into production delays , inventory adjustments and reconsideration of investment decisions.

Ahead of the review process of the United States-Mexico-Canada Agreement (USMCA) , scheduled for July of this year, the organization maintained that the current moment presents an opportunity to consolidate, rather than fragment, North America’s manufacturing platform. “The region faces increasingly intense global competition in electromobility, industrial digitalization, and the relocation of supply chains.”

He considered that strengthening regional productive integration will be crucial to maintaining North America’s position as one of the world’s most dynamic automotive hubs .

“The National Auto Parts Industry will closely monitor the evolution of the business environment and will continue to provide technical analysis and constructive proposals that contribute to the stability, resilience and competitiveness of the North American automotive chain,” he emphasized.

The auto parts industry in Mexico, with over $120 billion in annual production and its position as the leading supplier of auto parts to the United States, is one of the strongest pillars of regional manufacturing. Every minute, thousands of components cross North American borders as part of a deeply interconnected production system.

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In response to the tariff measures announced by the Mexican government within the framework of the Protection Program for Mexico’s Strategic Industries , the National Auto Parts Industry (INA) supported efforts to protect and strengthen domestic production in this sector .

This program, which was sent to the  Congress of the Union , considers reforming various sections of the General Import and Export Tax Law, which would adjust tariff fractions of the Tariff of the General Import Tax Law, in order to increase the most favored nation tariffs, applicable to the import of various goods, including auto parts and vehicles .

In this context, the INA emphasized the importance of protecting investments in the sector that support manufacturing processes in Mexico and that comply with the rules established in the United States-Mexico-Canada Agreement (USMCA) .

The measure considers, in the case of auto parts, tariffs between 10% and 50% of the customs value, while for vehicles the tax would be 50 percent .

“Auto parts represent a key sector for the country’s economic development,” the organization emphasized in a statement, acknowledging the importance of the tariff measures announced by the Mexican government.

“The goal is to strengthen strategic sectors of the national economy against imports from countries with which there are no free trade agreements,” he emphasized.

According to INA, Mexico is the fourth largest auto parts producer in the world and the leading exporter to the United States , accounting for one in every 10 auto parts exported globally.

“These results reflect the competitiveness, innovation, and quality that distinguish Made in Mexico , synonymous with talent, job creation, and integrated supply chains in North America,” he emphasized.

Given the current tariff context, the INA reiterated its willingness to work in coordination with Mexican authorities to ensure that the proposed measures contribute to strengthening this industry and achieving the strategic objectives established in Plan Mexico .

The auto parts industry is one of the most important in the country. In the first half of 2025 alone, auto parts production in Mexico reached $58.629 billion , according to the INA.

In terms of exports , the sector reported a value of 51.007 billion dollars in the first half of the year, with the United States (85.5%), Canada (3.4%) and Brazil (1%) as the main destinations.

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BorgWarner , a company specializing in the manufacturing and supply of engineered systems and components for mobility, has a network of 84 facilities in 20 countries to facilitate its logistical operations.

“As a global company, with 84 facilities in 20 countries, our strategy is to be where our customers are and where they need us, facilitating their logistics operations and management times,” said Lourdes Cobos , general manager of the Turbo Plant at BorgWarner Ramos Arizpe, in an interview with T21 .

In Mexico, the company has 11 facilities , nine of which are manufacturing plants and two are technical engineering centers . These units are located in strategic cities such as Ramos Arizpe, Saltillo, Irapuato, and others.

Mexican plants produce essential components for the automotive industry, such as turbochargers, engine chains, friction separator plates, EGR systems, starter motors, and alternators.

According to Cobos, the firm has no investment announcements in the works at this time; however, he emphasized that the region is very important to the company, which is why “we are constantly evaluating new investment opportunities.”

The automotive parts and components industry is also seeking to integrate sustainable and innovative goals into its operations with a view to reducing its carbon footprint.

“The truth is that the company has very specific goals to reduce our operational carbon emissions, boost energy efficiency, and responsibly manage our waste and water,” he emphasized.

Lourdes Cobos, who is also the first woman to preside over the Coahuila Automotive Industry Cluster , stated that “in 2023, the combined efforts of our facilities brought us even closer to achieving those goals.”

“All of our manufacturing plants, which supply original equipment manufacturers (OEMs) directly, are ISO 14001:2015 certified for their environmental management systems,” he explained.

This sector is playing a key role in promoting more sustainable production, implementing the use of solar panels and heaters, rainwater harvesting systems, and other measures and devices.

“We are making progress toward our goals: an absolute reduction of 85% by 2030 compared to our 2021 baseline, and carbon neutrality by 2035,” Cobos said of the company.

As part of these efforts, Lourdes Cobos said the firm seeks to offer and deliver innovative and sustainable mobility solutions.

“For several years now, we have been investing in the development of future technologies. Today, we have major electric vehicle projects underway in different regions of the world, including Mexico. We are investing prudently to keep pace with electric vehicle adoption, while leveraging the strengths of our foundational products. During this transition, sustainability remains a key priority,” he concluded.

According to information from the National Auto Parts Industry (INA) , auto parts production in Mexico reached a value of 18.375 billion dollars (mdd) in the first two months of 2025.

Meanwhile, the most manufactured components during the period were electrical parts, transmissions, clutches and related parts, engine parts, suspension, steering and related parts, according to the agency.

The integration of the supply chain in North America has strengthened Mexico’s role in that market, positioning the country as a strategic partner to meet the demand of the automotive sector in the region, driven by the relocation of production lines in Mexico ( nearshoring ). This is why this sector seeks to be more efficient in its operations, with environmental responsibility through measures to reduce its carbon footprint.

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In the automotive industry, there is a process of increased reinvestment even in the context of the imposition of tariffs by the United States, which has served as an opportunity to strengthen integration in the sector, highlighted Gabriel Padilla , general director of the National Auto Parts Industry (INA) .

At the presentation of the 3rd International Automotive Industry Supply Summit , which will take place in Querétaro on May 7 and 8, the executive indicated that the auto parts industry in Mexico has maintained steady growth, consolidating itself as a fundamental pillar of the national economy.

“This sector alone generates more than 880,000 direct jobs and operates two thousand plants throughout the country, generating more than $106 billion in foreign currency, a figure that positions this sector as the country’s main source of income,” he emphasized.

At a press conference, he noted that this highlights the importance of the sector, and pointed out that in 2024, auto parts production will reach $121.693 billion , representing a 1.20% increase compared to the previous year.

Padilla recalled that among the top 10 states in national production, Querétaro ranks fifth . He also noted that Mexico is the fourth-largest producer of auto parts globally and the first in Latin America, ahead of countries like Brazil. “Our country is the main supplier of auto parts to the United States, accounting for 87% of our exports.”

Regarding the event, which will take place in May, he noted that it has established itself as a key platform for strengthening the automotive industry’s value chain in Mexico and North America.

In his participation, Francisco González , executive president of INA, stated that the region’s strength lies in the collaboration between companies, governments, academia, and associations in Mexico, the United States, and Canada, countries that promote competitiveness and sustainable development in the sector.

“The elephant in the room is the tariff issue,” González said, referring to the tariff war promoted by US President Donald Trump. He added that the 25% tariff he initially announced applies to all Mexican exports. “Those that comply with and apply for the benefits of the United States-Mexico-Canada Agreement (USMCA) are exempt . 

He indicated that they have held meetings with the Ministry of Economy , an institution to which they have explained the situation of the sector, and specified that, despite the tariff outlook, investments for this industry remain in place , and announced that a company based in Querétaro will produce the first electric brakes for North America.

Regarding the third edition of the International Automotive Industry Supply Summit , he said the event is aligned with Plan Mexico and seeks to attract more investors. He noted that they are working with the International Finance Corporation (IFC) , part of the World Bank .

“I am confident that the conversations and alliances that will emerge from this forum will be decisive for the future of the automotive sector in our region and will also contribute to prosperity,” González added.

For his part, René Mendoza , national president of the Value Chain for Industry in Mexico (Capim) , pointed out that for many years there has not been a union between all the actors in the industry, and he emphasized that the event that will take place on May 7 and 8 is a specific instrument to achieve the mission of the Federal Government, which is the Plan Mexico.

“You’ll find everything from car manufacturers looking for someone to manufacture auto parts, to Tier 1 manufacturers looking for someone to perform this production process, and also companies looking for technology companies,” he explained.

He assured that key players in the sector will participate in the event, and noted that there will be top-level exhibitors and authorities. He added that last year they achieved more than 6,840 business connections , and they aim to expand them in 2025.

Meanwhile, Marco Antonio Del Prete , Secretary of Sustainable Development of Querétaro , indicated that the state is a national and international benchmark as a producer and supplier of automotive systems.

He emphasized that the 3rd International Automotive Industry Supply Summit is aligned with Plan Mexico, promoted by the Federal Government, and that this event will produce innovative ideas and significant projects for this industry.

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From January to November 2024, auto parts production in Mexico reached a value of 113,199 million dollars (mdd) , which represented an increase of 2% compared to the same period in 2023.

Gabriel Padilla , general director of the National Auto Parts Industry (INA) , indicated that for the end of 2024 an update was carried out and it is estimated to reach 122 thousand 890 million dollars , which would mean a growth of 2.19% in relation to the end of 2023.

“It is important to highlight how over the years the manufacturing of auto parts in Mexico has strengthened, growing 140% from 2010 to 2024,” Padilla said.

Regarding the monthly production of auto parts, the executive pointed out that in November 2024 the value of manufacturing was 9,603 million dollars . On the other hand, the INA indicated that, for 2025, an increase in the manufacturing of auto parts of 3.35% is projected to reach 127,009 million dollars .

Padilla stressed that 94.9% of national production was concentrated in the northern, Bajío and central regions of Mexico. As for the states, Coahuila leads with 14.8% share, followed by Guanajuato with 13.8% and Nuevo León with 12.7 percent .

Exports and imports of auto parts

Between January and November 2024, Mexican auto parts exports reached $98.275 billion , of which 87% were destined for the United States and 3.7% for Canada .

During the same period, imports amounted to 63.844 billion dollars, with the United States, China and Japan as the main suppliers. Meanwhile, the trade balance remains positive with 34.342 billion dollars , the executive indicated.

INA seeks supplier development

Gabriel Padilla reported that INA has launched a supplier development program, focused on strengthening supply chains in the automotive sector .

He indicated that the project, which has the support of the World Bank , will have three preparation phases and will include support to identify supply needs required by local companies, such as certification, machinery, technological equipment, among others.

Through the program, which is not intended to replace imports, companies will be selected and a diagnosis will be applied to them in order to offer support to close the gaps, he said.

According to Padilla, the project is aligned with the Mexico Plan , which aims to increase local content by 15% in global value chains in the automotive, semiconductor and other industries.

On the other hand, the director general of INA considered that in the face of the possible imposition of tariffs on Mexican products by the United States, the Mexican auto parts sector will continue to see increases in production and exports.

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The National Auto Parts Industry (INA) faces a key juncture in view of the revision of the Treaty between Mexico, the United States and Canada (T-MEC) in 2026, with the growth of electromobility, regulatory changes in labor matters and pressures for greater regional integration; positioning itself, in turn, to lead compliance and innovation in North America.

“Our industry is vital for the region: we are the supplier of 53% of automotive components in North America. The review of the USMCA is an opportunity to strengthen this integration and overcome the challenges ahead,” said Gabriel Padilla, general director of INA.

In this regard, he highlighted the importance of preparations for the review of the USMCA, which will be an opportunity to consolidate regulatory progress and respond to the challenges of economic and commercial integration in North America.

“2025 will be a crucial year for carrying out technical work to strengthen regulatory provisions, especially in labor, environmental and rules of origin issues ,” said Padilla.

One of the main challenges identified is compliance with the labor provisions of the USMCA , such as freedom of association, genuine collective bargaining, and gender equality.

Gabriel Padilla pointed out that, although the automotive and auto parts industry has shown compliance of over 75%, the goal is to reach 90% by 2026.

“We have no major concerns about compliance with Chapter 23 of the USMCA (on labor obligations), but we are committed to improving further, especially in matters of gender equality and female representation in technical and management areas,” he said.

For his part, Mauricio Cortés, labor attaché at the U.S. Embassy in Mexico, reaffirmed his country’s commitment to monitoring labor rights.

“Labor compliance under the USMCA will not experience significant changes, but there will be a stronger focus on ensuring that the provisions are fully complied with,” he said.

Cortés also stressed that the technical and financial support of the United States will continue until 2027, strengthening tripartite collaboration between the signatory countries.

In this context, the INA outlined four key commitments to strengthen regulatory compliance and the competitiveness of the sector.

The first of these is regulatory monitoring , with the creation of a labour observatory to identify risks of non-compliance in associated companies.

Another point is gender equity , developing programs to train women in technical skills and leadership, promoting equal opportunities.

On the other hand, social dialogue , with the establishment of working groups between unions, employers and local authorities in key regions.

Finally, transparency and training , through the dissemination of information on labor rights and training throughout the supply chain.

“We are committed to strengthening training and transparency in the sector, working closely with unions, government and international organizations to ensure regulatory compliance,” Padilla reiterated.

Electromobility and updating rules of origin

The USMCA review will also include discussions on new trends, such as electromobility and the need to update rules of origin to include components such as batteries, semiconductors and software.

Padilla explained that these areas represent an opportunity to consolidate regional integration, especially in high-value sectors.

In addition, the transition to electric vehicles has driven policies in the United States and Canada, such as stricter environmental standards in California and Texas, which have opened up new export opportunities for Mexico.

On the other hand, Gabriel Padilla also emphasized the importance of the tripartite relationship with the United States and Canada, highlighting the need for constant dialogue and technical cooperation on sensitive issues such as rules of origin, gender equality and labor standards.

Finally, Padilla stressed that the industry is focused on maintaining the strength of supply chains in the region, highlighting that the review of the USMCA towards 2026 represents a challenge, but also an opportunity to consolidate the Mexican automotive industry as a key player in North America, promoting competitiveness, innovation and regulatory compliance for the benefit of the entire region.

“Despite geopolitical concerns about countries like China, investments in our region have shown solid and stable growth. Mexico represents a key piece in North American integration,” he said.

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Within the framework of the publication of the project Diagnosis of the Labor Situation of the Automotive Sector in Mexico, implemented by the Pan American Development Foundation (PADF) , in collaboration with the University of Celaya and the National Auto Parts Industry (INA) , the results of the longitudinal study were presented that highlights the impact of the labor reform in the automotive sector, and how companies in the sector have adopted the provisions of the reform and Chapter 23 of the Treaty between Mexico, the United States and Canada (T-MEC), with the purpose of improving labor relations and promoting regulatory compliance.

The document assessed progress on key issues such as freedom of association, gender equality, prevention of violence and discrimination, as well as social dialogue .

“This analysis will allow us to design specific training to close the identified gaps and support the transition to a more inclusive and democratic work culture,” said Edgar Lee, project director.

The assessment included a quantitative survey of 261 companies and in-depth interviews with 26 industry leaders. Among the companies assessed, 59% are large organizations with more than 250 employees, while 30% are medium-sized and 11% are small. The study also included an assessment by region and company size to identify specific trends.

Ana Cuevas, a researcher at the University of Celaya, pointed out that 75% of the companies surveyed have already legitimized their collective contracts , and 76% obtained an approval level between 81% and 100%, “which reinforces transparency and union democracy,” she said.

He also noted that companies reported significant progress in violence prevention and freedom of association , both evaluated with an average of 4.3 out of 5 points.

“The automotive sector has stood out compared to other sectors in the modernization of its unions and in compliance with labor regulations, although traditional practices persist in some cases,” said Roberto Kuhlmann, a researcher at the University of Celaya.

On the other hand, Cuevas indicated that, despite an increase in the participation of women in operational and administrative areas, gaps persist in leadership positions. She also said that large companies have more structured policies, while small companies present specific efforts , “such as flexible schedules and breastfeeding rooms, but they lack institutional strategies,” she added.

Regarding the prevention of violence and discrimination, the implementation of NOM-035 has strengthened policies on this issue, however, challenges related to work stress persist due to the dynamics of the industry and just-in-time deliveries .

“Where there are clear regulations, such as NOM-035 and the labor reform, more concrete progress is observed,” Kulhmann added.

Despite progress, the assessment revealed that smaller companies face difficulties in implementing comprehensive strategies, especially in areas of gender equality and social dialogue. In addition, less regulated areas such as the prevention of discrimination require greater attention.

Edgar Lee added that over the next 20 months, the PADF will intensify training efforts to close the identified gaps and support companies in the transition to a more inclusive and law-compliant work culture.

According to experts, the study shows notable progress in regulatory compliance, but underlines the need for greater investment in comprehensive labor strategies, especially for small and medium-sized companies.

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Gabriel Padilla , the new general director of the National Auto Parts Industry (INA),  reported that they are looking to close 2024 with 126,149 million dollars (mdd) in auto parts production, which would mean a growth of 4.90% in relation to the end of 2023.

In a joint press conference with the Mexican Association of Automobile Distributors (AMDA) and the Mexican Association of the Automotive Industry (AMIA) , Padilla highlighted that after some setbacks in the sector, last August there was a recovery exceeding 10 billion dollars .

He said that next month, when the figures for September are presented, they expect that the production of auto parts will remain above that amount.

“This will continue to generate record figures for us compared to the previous year, both in production and exports,” said Padilla.

He also explained that, from January to August 2024, the northern region of Mexico represented 43.2% of production at the national level ; while the Bajío region accounted for 36.1% and the central zone 15.6 percent .

Regarding production by type of auto parts, he said that electrical parts have a share of 19.59%. In second place is the manufacture of transmissions, clutches and their parts with 9.95% , in third place are fabrics and seat mats with 9% , and engine parts are in fourth place with 7.86 percent .

Regarding exports, Gabriel Padilla announced that from January to August they amounted to 72 thousand 550 million dollars , where the United States and Canada represent more than 90% of the total of auto parts sent abroad ; while imports in said period were 46 thousand 961 million dollars , with a positive trade balance of 25 thousand 589 million dollars .

In his presentation, he highlighted the economic and commercial integration of the three nations that make up the Treaty between Mexico, the United States and Canada (T-MEC) , in which our country has an important role “because it plays in the region.”

“It is the only country with a level of competitiveness that allows it to supply almost three times the total value of auto parts produced in Latin America, so we are the only country that has these competitive advantages of a low-cost country plus other attributes of competitiveness,” said Gabriel Padilla.

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Mexico is experiencing an unprecedented moment in which the relocation of companies ( nearshoring ) is benefiting different industrial sectors in the country, mainly the automotive industry , in which the auto parts sector receives around 30% of Foreign Direct Investment ( FDI) that this industry captures.

Therefore, in order to strengthen the logistics of this sector, the National Auto Parts Industry (INA) signed a collaboration agreement with UPS which seeks to support companies and boost exports, especially small and medium-sized ones. companies (SMEs) with training and discounts.

“The logistical issue is very important, in the auto parts industry there are two very important concepts, just in time and just in sequence, for that the alliance contributes to this industry continuing to be a global benchmark,” he said in interview for T21 Armando Cortés, general director of INA.

He explained that in 2024 the industry will end up with around 126 billion dollars in production value, with the United States being the most important client with 43% of all its auto parts imports.

Cortés commented that it is necessary to have solid logistics and connectivity to the neighboring country to the north, especially to incorporate more regions that were not traditionally in the industry.

“To the extent that we have very efficient logistics with the best practices at an international level, we can add regions that were not on the (industry) map. The logistical issue is central, the difficulty of other states not developing lies mainly in the logistical issue of how to connect to the export corridor; Since the United States is our main client, we have to be very connected,” the manager highlighted.

He explained that the north of the country has around 43% of the companies in the industry , while the Bajío region has around 36%, however, states like Yucatán are gradually beginning to have participation in the sector.

On the other hand, he pointed out that the industry requires a certain logistical specialization , even more so when it comes to electric vehicles, which are increasingly taking more participation in the automotive industry.

For his part, Adriel Mateos, UPS Customs Manager, indicated that the main objective of this alliance focuses on providing tailored solutions and advice, mainly in foreign trade, so that all companies in the industry can export their products. products.

“We look for solutions that are tailored to each client in terms of needs, time, transit, service, specific requirements, compliance with each destination country, we cover the way to overcome their challenges,” said the specialist.

For this reason, he pointed out that they are diversifying their solutions to adjust to the industry, especially since the main means of transportation is land.

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