Introduction to the Key Players and Their Collaboration
The National Automotive Parts Industry (INA), in partnership with the Mexican Secretariat of Economy and the World Bank (WB), has committed to strengthening the integration of small and medium-sized enterprises (SMEs) in Mexico into global value chains, particularly within the automotive sector.
Program Development and Inspiration from Successful Models
The Supplier Development Program (PDP) is based on successful experiences from the International Finance Corporation (IFC) in countries like Vietnam and Turkey. This program aims to address the specific procurement needs of anchor or tractor companies, identify and evaluate national suppliers capable of meeting those demands, and subsequently strengthen their capabilities.
Program Phases and Participation
- During the first phase, 16 anchor companies expressed their commitment to join the program, and 35 areas of procurement requirements were identified.
- Approximately 400 Mexican companies registered to participate.
- After confirming that their offerings align with the intermediate input demands of anchor companies, these Mexican firms underwent an integral capabilities diagnosis developed by the World Bank Group and validated by industry experts to identify technical, operational, and commercial gaps.
Capacity Development Phase
By the second half of 2025, the capacity development phase will be consolidated. At least 55 SMEs with high potential will receive technical training, mentoring, and specialized consultancy. Additionally, their access to financial products will be facilitated through partnerships with NAFIN, Bancomext, and other financial and non-financial institutions.
Memorandum of Understanding and Context
The International Finance Corporation (IFC), a member of the World Bank Group, INA, and the Mexican Secretariat of Economy signed a Memorandum of Understanding for the PDP. This collaboration comes as the United States imposes tariffs on all countries, including Mexican trade partners.
Expected Impact on Mexico’s Economy
This alliance aims to increase the added value of Mexican exports and the economic spillover from foreign direct investment in the country. It will contribute to enhancing the competitiveness of automotive parts supply chains, which have a production value of $121.7 billion.
Key Questions and Answers
- What is the purpose of this collaboration between INA, the Mexican Secretariat of Economy, and the World Bank? The goal is to integrate Mexican SMEs into global automotive value chains, enhancing their competitiveness and the overall economic impact of foreign direct investment in Mexico.
- Which organizations are involved in this initiative? The International Finance Corporation (IFC), the National Automotive Parts Industry (INA), and the Mexican Secretariat of Economy are key partners in this collaboration.
- What phases does the Supplier Development Program (PDP) consist of? The PDP comprises an initial phase for identifying procurement requirements and registering interested companies, followed by a capacity development phase with training, mentoring, and access to financial products for promising SMEs.
- How will this collaboration benefit Mexico’s economy? By increasing the added value of Mexican exports and fostering a more competitive automotive parts supply chain, this alliance aims to strengthen Mexico’s position in the global market and attract more foreign direct investment.
