Automotive Parts Manufacturing Surging in Mexico

Mexico's automotive industry continues to strengthen its position as a critical manufacturing hub for North America—and the latest auto parts production numbers are impressive!

According to the National Auto Parts Industry Association (INA), based on INEGI data, Mexico's auto parts production reached a record $31.2 billion during the first quarter of 2026, representing a 9.58% increase over the same period last year and the highest quarterly production value ever recorded.

The growth is being fueled by continued demand from the U.S. automotive sector, which remains the primary destination for components manufactured in Mexico. In fact, 87.3% of Mexico's auto parts exports are shipped to the United States, and Mexico now supplies nearly 45% of all auto parts imported into the U.S., reinforcing its role as a leading sourcing partner.

For companies supplying materials into the automotive market, one statistic stands out: electrical components accounted for 19.6% of total production and grew by more than 11% year-over-year. As vehicles become increasingly electrified and connected, demand for engineering plastics, specialty compounds, connectors, housings, wire-management systems, and lightweight materials continues to rise.

Another notable development was the nearly 42% increase in gasoline engine production, which coincides with new hybrid powertrain manufacturing investments in Nuevo León.

This serves as a reminder that even as electrification advances, traditional and hybrid vehicle platforms will continue driving demand for high-performance plastic components throughout the supply chain.

Coahuila, Guanajuato, and Nuevo León remain the country's leading auto parts-producing states, together accounting for more than 42% of total production.

What This Means for the Plastics Industry

Behind every vehicle produced are hundreds of plastic components, from interior trim and seating systems to electrical connectors, under-the-hood applications, battery-related components, and lightweight structural parts.

As Mexico's automotive supply chain expands, so does the opportunity for resin suppliers, compounders, molders, recyclers, and equipment manufacturers serving the sector.

Looking to identify automotive plastics opportunities?  Townsend’s Database of Plastic Buyers contains detailed profiles on the plastic processing operations of more than 1,600 processors and compounders in Mexico, including over 300 companies serving the automotive industry.

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