Between Importing and Exporting: Mexico Does Not Substitute Auto Parts, It Needs Them to Export

In Mexico, the industrial space occupied by the auto parts subsector does not expand solely based on what the country produces, but on how it is integrated into global production, in a dynamic that does not reflect greater self-sufficiency, but rather a deeper integration in which importing is part of the very act of producing and exporting.

According to SiiLA, companies engaged in the manufacturing of auto parts, bodies, and vehicles—the three segments that make up the automotive sector— are together the largest industrial occupier in the country and represent about a quarter of total occupied space, with 3% growth between the first quarter of 2025 and 2026. However, their market share declined by 100 basis points, indicating their expansion pace was slower than the rest of the market.

A large part of that momentum is explained by the performance of auto parts, which account for around 40% of the value of production and sales in Mexico’s automotive sector and grew at a compound annual rate close to 5% between 2020 and 2025. Growth was concentrated in components such as steering, suspension, and braking systems—with rates of 7% to 9%—while higher-weight segments, such as electrical and electronic equipment and engines and their parts, advanced at a more moderate pace, revealing sustained but uneven expansion.

That trajectory was interrupted at the start of 2026. In the first two months of the year, production and sales fell 8% and 9%, respectively, compared to the same period in 2025, returning to levels similar to those in 2024. The contraction was particularly pronounced in transmission and steering systems, with double-digit declines. At the same time, engines and their parts were the only segment to grow, at 3%, confirming a slowdown across the value chain.

This slowdown is not explained solely by the sector’s internal performance, but also by its link to the auto parts trade, where the surplus does not—on its own—reflect the underlying dynamics.

After a period of deficit from 2010 to 2014, Mexico’s auto parts trade balance reversed, reaching a peak of $8.5 billion in 2022, reflecting sustained export growth. However, that progress has not reduced external dependence. In 2006, Mexico imported about 58 cents for every dollar exported. Today, that figure stands at 80 cents and has not improved since 2023.