Mexico presents a diversity of opportunities for U.S. exporters of auto parts and supplies.

      Because of the large-scale automotive vehicle production in Mexico and the growing aftermarket industry for auto parts, Mexico presents two sizeable and promising sub-sectors within the auto parts and supplies industry. Mexico is the world’s 11th largest automotive producer and is forecasted to rank fifth by 2011; as such, there is great demand for assembly parts and supplies that are needed in the production process. In Mexico, post market buyers of auto supplies and parts increasingly demand more sophisticated products – similar to what U.S. buyers now commonly seek. Together, these two groups pose great potential and already comprise a tremendous part of the Mexican economy, generating around 7.5 percent of GDP.

      Additionally, market saturation of simple, mass-produced auto products has left little desire to compete with low-cost manufacturer countries, like China. Regardless of the sub-sector in which a firm seeks entry (post market consumers or large-scale automotive vehicle producers), those that intend to export sophisticated and innovative goods to Mexico’s auto parts and supplies industry possess great potential for success.

Market demand

            Mexico already presents a favorable market for U.S. exporters of auto parts and supplies. The United States benefits from its proximity and free trade environment to place itself as the number one exporter to Mexico in this sector. Nonetheless, for this market dominance to simply be maintained, modernization and continued advancement are needed. Although sizably trailing the United States, Japan, China and...

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