National Auto Parts Industry expects increased production of auto parts and stations for electric vehicles

The National Auto Parts Industry (INA) estimates a growth in the production of auto parts with zero emissions and in recharging stations in Mexico .

The foregoing is derived from the Inflation  Reduction Act ( IRA) in the United States; Among other important issues, this legislation promotes incentives such as a current tax credit of 7,500 dollars to buy an electric vehicle, as long as it is less than 80,000 dollars in the case of VANs, SUVs and pick-ups; and $55,000 for other vehicles. 

The INA  forecasts that between 2035 and 2040, 50% of the cars manufactured in the region will be zero emissions , which will represent an important opportunity for the auto parts sector. 

Regarding recharging stations, the agency reported that there are 1,189 vehicle recharging stations in Mexico . The leading country at a global level in this aspect is the Netherlands, with more than 58,500 stations; Germany, with 24,600; and France, with 21,000. Likewise, the country has 2,193 electrical connectors , which represents a ratio of three to one of cars per charger installed.

The INA also announced that in the last 23 years, the Free Trade Agreement between Mexico, the United States and Canada (T-MEC, formerly NAFTA) has attracted a foreign direct investment of 48,347 million dollars in the auto parts sector and with this, the creation of 875,000 direct jobs. 

It should be noted that the country is the main supplier of auto parts for the United States, since 39% of the total imports of that country come from Mexico; that is, about 80,000 million dollars at the end of this 2022.