Abstract

ALVAREZ, Lourdes  and  CUADROS, Liliana. Chinese Imports and Their Impact on The Spare Auto Parts Market in Mexico. Prob. Des [online]. 2012, vol.43, n.169, pp.97-119. ISSN 0301-7036.

The aim of this paper is to examine how the spare auto parts market in Mexico is being affected by the introduction of Chinese auto parts. The trade deficit between Mexico and China in the auto parts subsector has increased in recent years and Chinese car parts belong to a supply strategy that has seen the set-up of companies to lower manufacturing costs, open new lines and avoid product shortages. This is necessary in a spare parts market growing at an annual rate of 10% where there has been an important increase in makes and models, creating a need for companies to specialize. However, quality and performance standards of the auto parts introduced to the country do not exist; there are piracy issues and the auto parts on the market are perceived as being of bad quality.

Keywords : Bilateral trade; Mexico-China; spare parts market; Chinese auto parts.

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