More companies will arrive to the auto parts sector

More companies will arrive to the auto
parts sector
Admin | Feb. 9, 2012
The installation of new car producing plants has detonated the interest of foreign brands
specialized in auto parts, of establishing itself in national soil. It is estimated that at least
five dozens of companies, of foreign capital, will establish themselves in the short term
inside the country.
Juan Carlos Rivera, Director of the International Business Department at Tecnológico de
Monterrey, explained that this phenomenon responds to the fact that most manufacturers
of light vehicles have climbed to higher added value activities, which requires
increasingly specialized parts suppliers.
"Many companies have remained left behind the new trends. The challenge is to
accelerate the adoption of new technologies as for power, auto parts specialized in
alternative fuels like hybrid batteries or electrical engines. "
Rivera considered that the development of more sophisticated and environmentally
friendly automobiles requires supply chains with not only added values but also certified
and guaranteed on-time delivery.
"This area of opportunity is taken advantage of by foreign auto parts companies that
develop specialized components and that have not entered Mexico."
American, European and Asian companies are taking the lead in this area. To a lesser
extent, but strongly, Dutch, Scandinavian and Middle East firms are advancing.
Statistics of the Secretariat of Economy (SE), reveal that of the 1,100 auto parts
companies established in Mexico, 30% came from domestic capital and 70% from
foreign capital.
Of the total universe of companies, 345 of them are first level manufacturers and the
remaining ones correspond to manufacturers of inputs of raw materials of the second
and third level.
According to the federal agency, the companies of the terminal industry of light vehicles
possesses a total of 18 production complexes in 11 states of the country, in which there
are realized activities ranging from assemble and / or shielding up to the smelter and
stamping of motors and vehicles.
Oscar Albín, president of the National Auto Parts Industry (INA), explained that to meet
the growing demand for automotive components of the assembly, this year they will
install 40 local and foreign plants, which will cause production to increase to a 20% to
reach a volume of 83.000 million dollars in Mexico.