MEXICO CITY, Dec 6 (Reuters) – Mexico’s auto elements manufacturing will probably hit a file of almost $107 billion this yr, up virtually 13% from final yr, the director of the nationwide auto elements foyer INA introduced on Tuesday.
Mexico’s large automotive making and auto elements sector is a key driver for the nation’s manufacturing trade, which is closely built-in into U.S. and Canadian provide chains.
INA director Alberto Bustamante instructed reporters he expects the worth of manufacturing to rise to about $109 billion subsequent yr after which surpass $110 billion in 2024.
“The commerce struggle the US has with China is a big issue,” he stated, pointing additionally to rising funding from Chinese language corporations into Mexico in addition to U.S. incentives for Mexican-made automobiles and the North American free commerce pact.
Bustamante additionally stated output ought to profit from a restoration from semiconductor shortages. INA estimated that some 285,578 Mexican automobiles this yr had been impacted by the shortages.
Throughout North America, this determine reaches 726,392 automobiles, INA stated, a 70% discount from final yr.
Nevertheless, Bustamante highlighted {that a} prime trade problem subsequent yr can be securing semiconductor provides, in addition to assembly a Might 1 authorities deadline to ratify collective contracts.
Throughout the Mexican market, the nation’s Affiliation of Vehicle Distributors (AMDA) stated gross sales rose 15% within the first 11 months of 2022, with over a 3rd of the market dominated by Nissan (7201.T), Normal Motor’s Chevrolet (GM.N) and Toyota (7203.T).
Mexico’s Auto Business Affiliation (AMIA) in the meantime reported an 8% manufacturing leap in November, although exports – that are primarily destined for the US – slipped 3.8% within the month.
Business representatives additionally voiced issues about prolonged regularization of so-called “chocolate vehicles” – illegally imported used automobiles – which they argued was pushing down used automotive costs and benefiting legal gangs.
Reporting by Aida Pelaez-Fernandez and Sarah Morland; Modifying by David Alire Garcia and Andrea Ricci
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