Background on the Automotive Industry in Querétaro
Querétaro, Qro. Amidst the complexities faced by the automotive industry at both regional and national levels, the local industry is expected to close 2025 with minimal changes but anticipating a slightly lower annual variation compared to the previous year.
Statement by Daniel Hernández Camacho, Director of the Querétaro Automotive Cluster
Daniel Hernández Camacho, Director of the Querétaro Automotive Cluster, mentioned that the automotive industry might conclude with a production level lower than the previous year, but not as drastically as initially estimated.
Recent Industry Trends and Optimistic Indicators
The national automotive parts industry has recently shown more optimistic indicators, though the trend towards year-end might accumulate data showing a decrease compared to 2024.
“In the finished industry, we are slightly below what we had last year, approximately -0.9% is the estimated variation for the end of the year, with a -1% decrease in vehicle production. In autopartes, numbers have significantly improved in the latest report, but we will still finish below last year’s production. I don’t want to speculate on the final forecast, but we are certainly expected to finish below last year’s production, not as severely as anticipated…
Hernández Camacho expressed confidence that the contraction would be less than expected, which would be positive for a sector that began the year with uncertainty due to US tariff announcements on Mexico.
Segment-wise Impact and Challenges
He acknowledged that the impact varies depending on automotive industry segments; for instance, heavy-duty vehicle production has declined more significantly. Factors such as investment pauses and tariff uncertainty play a role in this decline.
“Some segments have been affected much more than others. For example, in the heavy-duty sector—as seen in September data—a 54% drop is a massive blow to the heavy-duty industry, with numerous contributing factors…. The uncertainty surrounding President Trump’s tariff announcements has significantly impacted production.
Industry Challenges and Opportunities
In this context, Hernández Camacho highlighted that the Mexican industry’s challenge is to meet regional content value to benefit from the Mexico-United States-Canada Agreement (T-MEC).
Regarding the electrification segment, he noted that although it is growing, it is not progressing as expected.
“The electric vehicle industry in the United States represents around 10% of total sales; we expected to be much closer to that percentage by now, aiming for 30% of total sales by 2030. Clearly, the electrification industry has not grown as anticipated,” he said.
Nacional Autopartes Production Performance
The national production of autopartes—an industry present in Querétaro—reached a value of $68,744 million from January to July of this year, indicating a 5.9% contraction. However, it represents a one-point percentage recovery compared to the previous report when the decline was 7.1%, according to the National Automotive Parts Industry (INA).
- January-July 2025: $68,744 million
- Previous report’s decline: 7.1%
- July 2025 production: $10,115 million
- Average monthly production: $9,821 million
Key Questions and Answers
- Q: What is the expected production variation for the automotive industry in Querétaro by the end of 2025? A: The industry is anticipated to close 2025 with a minor production decline, slightly below the previous year’s level.
- Q: How do different segments of the automotive industry fare in Querétaro? A: The heavy-duty vehicle segment has experienced a more significant decline compared to other segments, influenced by factors like investment pauses and tariff uncertainty.
- Q: What challenges does the Mexican automotive industry face? A: The industry must meet regional content value requirements to benefit from the T-MEC and face the slow growth of the electric vehicle sector.
