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of spare parts, equipment and new technologies to reduce costs. Parts, equipment andfirst and second-tier components from the U.S. might experience an increase in exportsdue to forecasted Mexican production of new models that have shifted from U.S.assembly plants.The economic outlook for 2010 is conservative. Eduardo Solis, Chairman of the MexicanAuto Association, acknowledged that the industry’s situation is linked to the economyand financial environment and forecasts recovery in 2010 would be slow with a slightgrowth in car sales of five percent by the end of the year. To offset the fall in sales, theindustry and government will have to develop other strategies to target niches in thedomestic market. The industry is currently working with the government to reduce taxesfor purchasing and owning a car, and an old car replacement program. Despite thedecline in demand and production, some automotive companies announced largeinvestments in Mexico last year. This is due to Mexico’s advantage in low labor costsand recent technological development in the auto industry. In addition, companies arelooking for lower manufacturing and export costs.Best Prospects/ServicesReturn to topThe greatest opportunities include: spare and replacement parts for gasoline and dieselengines, electrical parts, collision repair parts, gear boxes, drive axles, catalyticconverters, and steering wheels. In the first and second-tier supply chain sector,opportunities include: OEM parts and components, precision assembly devices,machined parts, hybrid vehicle components, suspension systems, and pre-assemblycomponents such as small and progressive stampings. Other products in demandinclude electronic components, specialized tooling, systems that eliminate waste andgreen technologies such as new combustion systems to reduce gas emission and oilconsumption.OpportunitiesReturn to topGiven the economic slowdown, lack of financing, high interest rates and competition, themarket has become more price-sensitive. In Mexico, 70 percent of new cars arepurchased on credit. Because of the credit shortage, new car sales have decreased andmany consumers choose to maintain their vehicles for a longer period of time. As aresult, OEMs located in Mexico will continue to reduce production along withimplementing strategic changes in their brand vehicles, including new technologies tomake them more efficient and less expensive.The number of used vehicles being imported, especially after the NAFTA allowance fornewer models, provides opportunities for exports of repair equipment and replacementparts. Effective January 2009, Mexico imposed a 10 percent duty on imports of usedvehicles, which was decreased to 3 percent in March 2009. U.S. companies still facesome barriers when exporting to Mexico. The most significant requirements includehaving a Certificate of Origin, and the 3 percent tariff based on a minimum estimatedprice, or “reference price” for the given year, make, and model of the car. Importers ofused vehicles must post a guarantee representing any difference in duties and taxes ifthe declared customs value is less than the established reference price. U.S. exportersare advised to work closely with their importers and customs brokers to ensure that allspecific requirements are met.
ResourcesState of Jalisco Auto-parts Distributors Association:National Auto parts Industry Association:Mexican Association of Automobile Distributors:Mexican Association of Automotive Industries:Office of Transportation and MachineryReturn to tophttp://www.rujac.comhttp://www.ina.com.mxhttp://www.amda.org.mxhttp://www.amia.com.mxhttp://www.trade.gov/autoFor more information on automotive parts and supplies in Mexico, please contact:Ms. Monica Martinez, Commercial AssistantU.S. Commercial Service, Mexico CityMonica.Martinez@mail.doc.govTel: (011-52-55) 5140-2628Fax: (011-52-55) 5566-1111
Page 1: Doing Business in Mexico: 2010 Coun
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Page 6 and 7: Before signing an agent/distributor
Page 8 and 9: In order to satisfy clients’ dema
Page 10 and 11: egardless of their geographic proxi
Page 12 and 13: The following companies organize tr
Page 14 and 15: to create a solid contract that inc
Page 17 and 18: Web ResourcesReturn to topU.S. Gove
Page 19 and 20: AgribusinessOverviewReturn to top20
Page 21: Automotive Parts and SuppliesOvervi
Page 25 and 26: • Corporate training programs in
Page 27 and 28: excluding large hydroelectric proje
Page 29 and 30: Environmental SectorOverviewReturn
Page 31 and 32: Franchising SectorOverviewReturn to
Page 33 and 34: Hotel and Restaurant EquipmentOverv
Page 35 and 36: Housing and Construction ServicesOv
Page 37 and 38: Internet and IT ServicesOverviewRet
Page 39 and 40: Packaging EquipmentOverviewReturn t
Page 41 and 42: With this boom in the packaging sec
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Page 45 and 46: CATV: Today 30% of homes have pay-T
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Page 61 and 62: and organs, almost all medical prod
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Page 65 and 66: Certification Bodies:EMA has accred
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Return to table of contentsChapter
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SECTION 2: SECTORS RESERVED FOR MEX
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majority share (about 75 percent) o
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Expropriation and CompensationRetur
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contribution. The Mexican Bank for
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Government continues to work with i
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to banks and non-bank banks. Despit
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government sent the sent the Federa
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Business Transactions (OECD Antibri
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• Information about the OECD Anti
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Greece, Italy, Netherlands, Portuga
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Foreign Direct Investment Realized
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individuals who are equally new to
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sector, which is expected to uncove
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For further information please visi
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Local Time, Business Hours, and Hol
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Mr. Garth ThorburnDirector, U.S. Ag
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Asociación Nacional de Importadore
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