MEXICO CITY-Sales at Mexican automotive parts suppliers during 1995 declined by a third and about 27,000 jobs were lost in the industry as a result of the country's recession, according to the National Auto Parts Institute, or INA. In a report on Mexico's crisis year following the peso devaluation in December 1994, INA said the industry experienced a loss of about 34 percent, from US$6.8 billion in 1994 to US$4.5 billion last year.
The Mexico City trade group attributed the drop partly to the severe contraction in the country's automotive market in 1995, but also said automakers increased the level of imported parts for vehicles built in Mexico. Auto sales in Mexico fell 70 percent last year from the prior year.
This year, INA said it foresees two possible scenarios for the domestic auto industry. The first indicates that without any special government stimulus, the domestic market will grow nearly 23 percent.
In the second scenario, INA predicts that with government incentives, domestic car sales could rise 44 percent and vehicle exports could rise 5-18 percent.INA forecasts a growth rate for the parts industry of about 11 percent for 1997.