Apollo Tyres recently opened its first two-wheeler tyre manufacturing unit in India to cater to growing demand for the premium two-wheeler bikes. In an interview, Neeraj Kanwar, Vice Chairman & MD, Apollo Tyres, spoke on the new plant and growth in the premium bike segment and the company’s readiness for the premium two-wheeler tyre market..

With the opening of its two-wheeler manufacturing facility, Apollo Tyres aims at having a “strong foothold” in the premium segment of two-wheeler tyres, which is the comparatively high-value and highly profitable segment, India.

With having a vision of to be a premier tyre company with a diversified and multinational presence, Apollo Tyres manufactures and supplies a wide range of tyres for trucks and buses, light trucks, passenger vehicles, off-highway vehicles and two-wheelers.

“We are known for offering technologically advanced products to our consumers in all the categories. Getting into the premium biking segment was a natural progression for us,” said Neeraj Kanwar, Vice Chairman & MD, Apollo Tyres. 

With the new facility, Apollo Tyres now plans to have a strong foothold in premium motorcycle tyre market in India. Despite being a late entrant, Apollo Tyre has already grabbed a 7% market share in the replacement market in the two-wheeler tyre space due to a best-in-class and high-technology product portfolio.

The new two-wheeler tyre manufacturing unit is located within Apollo Tyres’ Limda plant in Vadodara, Gujarat, which has an initial capacity to produce 30,000 motorcycle radials and 60,000 cross-ply motorcycle tyres per month.  With a modular layout of the facility, the capacity can be replicated easily, as the demand increases.

“We now have a global portfolio of high-end bias and steel radial tyres for two-wheelers, which will be produced at our highly advanced and futuristic facility in Vadodara, Gujarat,” added Kanwar.

Apollo Tyres, in 2016, entered the two-wheeler tyre business by launching India’s first zero-degree steel radial tyres, a global gold standard for motorcycle tyres, and now commands a double-digit market share in this segment. “Being a late entrant into the two-wheeler tyre space, we wanted to create an impact in the market. In under four years, we have built an entire range for Indian and European market, grown at a CAGR of 35%, catered to market with a new last-mile distributor model and built a grounds-up connect with the biking community through our multiple brand initiatives,” said Kanwar.

Apollo Tyres is looking at selling our two-wheeler tyres from the Vadodara facility to all market segments, including exports. “In fact, we already have shipped the first consignment from this facility for the European market,” added Kanwar.

Premium bike segment

The premium bike segment, which constitutes nearly 20% of the motorcycle market in India, is the fastest growing one. According to a TechSci research report, the Indian premium motorcycles market is projected to reach $ 161 million by 2023, on account of rising Y Generation population and per capita income, and availability of a wide array of premium motorcycle models and easy financing options. The report also added that increasing number of CKD and SKD units, the launch of newer and advanced premium motorcycle brands and models, rising popularity of superbike clubs and communities, and increasing biking culture are among the key factors expected to drive the country’s premium motorcycles market in the coming years.

“India also is the largest market for two-wheelers, and it still has headroom for further growth. In the current pandemic era as well, there is the demand coming in as people are moving away from shared and public transport and gradually moving to own a personal vehicle, including a two-wheeler, further driving the demand for tyres in this category,” said Kanwar.

Though many tyre companies are betting high on the premium tyre segment, commuting bikes will continue to dominate the market. According to Kanwar, the economy segment bikes still drive volumes for Apollo Tyres’ two-wheeler tyre business. Instead of looking at this segment as a commodity business, the company caters to the segment with multiple product offerings according to various markets in India. “We have seen emerging trends in this segment like the rapid rise of delivery and courier services and have built specialised offerings for this space as well,” said Kanwar.

Along with having a leading position in India, Apollo Tyres is also expanding its business in the challenging and advanced automotive markets in Europe and the Americas. Apart from having five manufacturing plants- Chennai, Perambra, Limda, Kalamassery and most recently, Chittoor- in India, the company has established two manufacturing plants outside of India – The Netherlands and Hungary.

Having global R&D centres in India and Europe give distinctive advantages to Apollo Tyres to caters to all segments. Both R&D teams use their collaborative experience to come up with technologically advanced products for the premium bikes. “Entering the two-wheeler segment in 2016, we used the global knowhow, to come out with zero-degree steel-belted radials in 2018, a global gold standard for motorcycle tyres,” said Kanwar.

 Apollo Tyres has used the concept of ‘design to delivery’ while setting up this two-wheeler tyre facility in Vadodara, Gujarat. Most of the equipment used are special purpose machines, which have been conceptualised in-house and converted to reality.

However, the competition in the two-wheeler tyre segment in India is very high, and few companies have dominated the segment. The segment is expected to be more crowded with new entrants. Apollo Tyres has set its focus on the premium segment of two-wheelers, which is 20% of the entire two-wheelers while supplying to the mass market segment. “We are looking at servicing this segment with our zero-degree steel belted radials and high-end bias tyres. Our strategy is to build the brand and create a pull for our products across categories. We have been actively engaging with several biking communities and enthusiastic and passionate riders,” explained Kanwar.

In FY 2020, in the two-wheeler segment, the company launched 17 new SKUs for the higher premium bikes and scooters and extended its steel radial portfolio with the launch of two new SKUs – Alpha S1 140/60 R17 and 130/70 R17. For its two-wheeler business, the company executed the Alpha sustenance campaign earlier in 2020 to make it one of the most viewed brands by the end of the campaign.

Talking on the recent imposition in Chinese tyres, Kanwar said, “We are definitely better placed than before.”

 

In a significant move to revive its iconic legacy in India, Dunlop Tyres is accelerating expansion plans with a sharp focus on in-house manufacturing capacity for commercial vehicle tyres and strategic collaborations in the consumer segment.

Executive Director Sakchi Ruia outlines an ambitious roadmap that leverages the brand’s pioneering heritage, embraces electrification and targets value-driven growth across key segments amid a rapidly evolving Indian tyre market.

In the competitive landscape of the Indian tyre industry, few names carry the historical weight of Dunlop. As the pioneer of the pneumatic tyre globally and a foundational player in India since 1896, the brand is poised for a significant revival.

In an exclusive interaction with Tyre Trends, Sakchi Ruia, Executive Director of Dunlop Tyres, shared her vision for breathing new life into the iconic marque, focusing on capacity expansion, segment-specific growth and adaptation to emerging technologies such as electrification.

Ruia, an MBA from Columbia Business School who brings experience from McKinsey & Company, has been instrumental in steering Dunlop’s operations since joining in 2023. Her leadership emphasises leveraging the brand’s storied heritage while addressing modern market dynamics.

“Dunlop as we all know is the first tyre brand in the world, first pneumatic tyre brand and it has been very monumental in India as well. We have very big plans for the brand and are looking to really revive the brand here. We are exploring both greenfield and brownfield opportunities,” she reveals.

The company has already made inroads in the truck and bus radial (TBR) segment, with broader ambitions spanning multiple vehicle categories. This strategic revival comes at a time when India’s automotive sector is experiencing robust growth across consumer and commercial segments, driven by rising vehicle ownership and evolving consumer preferences.

NAVIGATING A COMPETITIVE LANDSCAPE

India’s tyre market is one of the most fiercely contested globally, with legacy domestic players, international entrants and new challengers vying for share.

When asked about competition, Ruia embraces it as a catalyst for progress. “I think competition is good, right? I think it takes the industry forward with the competition,” she notes.

“I think we see a lot of stakeholder development, ecosystem development. Like we see a lot of machine makers are now coming to India to manufacture. And that’s because of the whole pool of all the players combined,” she explains.

Dunlop, she emphasises, on the other hand, is no newcomer. “Dunlop is not a new player in the industry. It’s a legacy player, it’s seen the wave, it’s been there.” She highlights the ample room for growth in a market where demand has not yet outstripped supply.

“I think there’s a lot of space for a lot of players right now. It’s not a space where demand is far exceeding supply still. So I think there’s a lot of space for people to really make their mark,” she avers.

Ruia pointed to supportive policies favouring locally manufactured tyres as an opportunity for Indian players, including Dunlop, to flourish. The ecosystem, she believes, benefits the entire industry and enables established brands with heritage to differentiate themselves through quality and reliability.

ADDRESSING COST-CONSCIOUSNESS AND VALUE IN COMMERCIAL TYRES

On the other hand, coming to the commercial vehicle segment, which continues to remain highly cost-sensitive, Ruia argues that true value lies beyond upfront pricing.

Discussing the competitive nature of business and the acquisition cost for commercial vehicle customers, she observes, “I think what feeds drivers value in the commercial segment is cost per kilometre. So that really gives advantage to the value players. It’s about providing value-for-money; whoever’s manufacturing quality tyres really gets value.”

She notes that Indian customers in this segment are discerning. “India is a very quality-conscious market in that regard. Because they look at cost per kilometre, not just cost per tyre. They want tyres which run longer kilometres, give better mileage. I think there’s a lot of scope and space and the market itself filters out the players,” says Ruia.

On the concept of tyre-as-a-service or cost-per-kilometre models gaining traction among competitors, Ruia expresses keen interest.

“Cost per kilometre for sure, we work heavily in the commercial segment with the TBR. We really do see that the end-consumers are very supportive for this metric. And they really value the lifelong value of the tyre that they get, not just upfront cost. Tyre-as-a-service is very interesting; we haven’t explored it yet. But that’s something which I was also very interested to hear about today,” she says.

CAPACITY EXPANSION AND SEGMENT PRIORITIES

A cornerstone of Dunlop’s future strategy is establishing in-house manufacturing capacity, particularly for the commercial segment. Ruia confirms that plans are advancing, though details remain under wraps for now.

“I think once the announcement is there, everyone will know about it. It’s initial stages right now. We’re in discussions about really formalising and crystallising the plans,” she explains.

Furthermore, the company is already evaluating both greenfield and brownfield options, with timelines tied to ongoing discussions. In the interim, Dunlop maintains presence in two- and three-wheeler tyres through partners (Ludhiana-based Ralson India), a segment close to the brand’s heritage where it once held significant market share. “Two- and three-wheeler remains very close to Dunlop’s heart. We’ve always done well in this segment,” Ruia affirms.

Passenger car radial tyres (PCR) are on the longer-term horizon. “PCR tyres again is something which is in the pipeline, not in the foreseeable future. But eventually, yes, we’d want to get into that segment as well. It is growing. So, you know, let’s see how the plans evolve. Right now, our focus is the commercial segment,” the Dunlop executive says.

Ruia explains that collaboration opportunities in the consumer segment will complement in-house commercial production.

Outlining her top three priorities for the next 3–5 years, Ruia says, “I think the top thing that we’re looking for is to definitely have in-house capacity for commercial vehicle tyres. That’s one thing which is top of mind for us. We are also looking to explore good collaboration opportunities in the consumer segment. Because we’re going to be doing in-house manufacturing for the commercial segment. That’s going to be number two. And number three, I think we really, really want to focus on the new-age solutions.”

EMBRACING ELECTRIFICATION AND NEW-AGE TECHNOLOGIES

Electrification represents both a challenge and a major opportunity for the global automotive and allied industry. With trucks and buses increasingly shifting to electric powertrains, tyre requirements are evolving rapidly.

“I think, electrification is a very interesting and exciting opportunity for everyone across the board, consumer and commercial,” Ruia says.

“There are some unique requirements for tyres, such as lower rolling resistance, ability to handle higher instantaneous torque, reinformed sidewalls and lower noise due to the silent nature of EVs. Electric vehicles are going to be much heavier, less noisy and have high torque requirements. So tyres will also need to take shape accordingly,” Ruia says.

Key adaptations will include better sidewalls, enhanced load resistance and reduced noise levels. “I think the industry as a whole will develop tyres to meet those requirements. I don’t think it’s going to be an option for anyone (to not develop EV tyres). But we’ll all evolve to meet those requirements,” she says.

Ruia stressed that the tyre industry will align with government focus on EVs. “I think the government is also focusing a lot on EVs. And I think the tyre industry will flow with that demand,” she adds.

She mentions that new-age product development, particularly for EVs, forms a critical part of Dunlop’s forward-looking strategy.

As Dunlop moves to formalise its expansion plans, the focus remains on quality, heritage and innovation. Ruia’s pragmatic yet optimistic outlook underscores a brand ready to reclaim its position by combining legacy strengths with forward-thinking investments in capacity, partnerships and technology.

For the tyre industry, Dunlop’s revival signals not just renewed competition but also fresh momentum in expanding choices for consumers in India. With in-house manufacturing on the horizon and a clear emphasis on value-driven performance and electrification, the company is positioning itself for sustainable, long-term growth in one of the world’s most dynamic markets.

The Tire Society will hold its 45th Annual Conference and Business Meeting on Tire Science and Technology on 22–23 September at the University of Akron, as the industry turns its attention to digitalisation and data-led development.

The not-for-profit organisation said the event, themed “Reinventing the Tire: Digital Transformation, Data-Driven Advances, and Predictive Methods”, will bring together engineers, researchers and executives from manufacturers, suppliers, laboratories and universities across North America, Europe and Asia.

The two-day programme will feature presentations from invited speakers and researchers on developments in analytical, experimental, digital and computational science of tyres.

Young Gon Shin, Vice-President of Hyundai Motor Company’s MSV Chassis Engineering Design Group and chair of its Tire System Expert Committee, will deliver the opening keynote. His address, “Reinventing Tire Development for the SDV Era: Closing the Loop through Connected Data and Digital Twin Transformation,” will examine the impact of electrification and software-defined vehicles on tyre development.

Across five technical sessions, nearly 20 presentations will cover topics including tyre models for vehicle simulation, physics-based modelling, durability and rolling resistance, lifecycle analysis, and emerging technologies such as tyre sensors and hydroplaning detection.

The programme will also include two plenary lectures. Thomas J.R. Hughes of the University of Texas at Austin will present “The Finite Element Method and Isogeometric Analysis: Past, Present, Future”, while Bruno Finco and Girish Radhakrishnan of MOVEdot will discuss “AI Agents in Tire R&D: Accelerating Design Cycles Across Lab, Track, and Simulation.”

The first day will conclude with an awards banquet featuring the Society’s annual awards presentation led by Jason Bokar of Michelin Americas R&D Corporation, and a speech from Chris Chapman of MongoDB titled “The Data Intelligence Layer: Building Agentic Systems with Memory.”

Day two will include the Society’s annual business meeting and state of the organisation address, alongside distinguished award presentations.

“This year's program captures a real inflection point in our industry — tire engineering is moving from a testing-centered process to one built around connected data, digital twins, and predictive models,” said Adam Stackpole, 2026 conference programme chair. “We're excited to bring the tire science community together in Akron to share this work and set the agenda for what comes next.”

Registration details and the full programme are available via the organisation’s website.

Apollo Tyres has appointed Omar Bali as Group Head – Talent, Learning and HR Business Leader for enabling functions.

Based in Gurugram, Bali will lead talent, learning and leadership for the organisation and partner as HR business leader for enabling functions.

He joins Apollo Tyres after more than 10 years at Signify, where he held multiple roles across geographies. Most recently, he served as Global Head – Talent and DE&I, leading talent strategy across more than 70 countries and working with senior leaders on workforce planning, skills-based organisation initiatives and digital learning transformation.

Earlier at Signify, he was Head HR for the Middle East, Turkey, Africa and Pakistan, supporting more than 25 markets and focusing on leadership pipeline, employee experience and organisational capability.

Prior to this, Bali held roles at Philips Lighting as Director HR, at Micromax Informatics as Head – Business HR, and at Whirlpool Corporation, where he worked across talent acquisition, performance management, learning and development, and HR business partnering.

Bali has more than 20 years of experience across consumer goods, manufacturing, pharmaceuticals and technology sectors.

Mexico’s automotive industry is entering a pivotal phase as global manufacturers rethink supply chains, tariffs reshape trade flows and the transition to electrification gathers pace. While uncertainty over evolving technologies and geo-politics continues to weigh on investment decisions, the country is leveraging its deep North American integration, competitive manufacturing base and expanding tyre sector to reinforce its position as a global auto parts powerhouse. Industry leaders now see fresh opportunities emerging not only from US and Canada but also from Latin America, Europe and India.

Mexico’s automotive parts industry is entering a new growth cycle powered by deep North American integration, expanding trade agreements, low-cost manufacturing and a rapidly evolving tyre sector that is adapting to electrification, hybrid vehicles and changing consumer preferences.

While global uncertainty over tariffs and the pace of electric vehicle (EV) adoption continues to cloud investment decisions, Executive President of Industria Nacional de Autopartes (INA) Francisco N. Gonzalez Díaz believes Mexico’s mature manufacturing ecosystem, skilled workforce and strategic location position it for another decade of expansion, one that could also strengthen ties with emerging automotive partners such as India.

“The country’s automotive supply chain has transformed dramatically since the North American Free Trade Agreement (NAFTA) came into force in 1994. Today, Mexico is the world’s fourth-largest producer of automotive parts and one of the most integrated manufacturing hubs in North America, exporting components and tyres primarily to United States and Canada while increasingly targeting Latin America and Europe,” said Diaz during an exclusive interaction with Tyre Trends.

He added, “The tyre sector is very important in Mexico. Over the past few years, we’ve seen major investments from companies such as Michelin and Pirelli and we also have Indian tyre manufacturers operating in Mexico. The industry is growing in both passenger and commercial vehicles while introducing technologies that reduce pollution and improve efficiency.”

Tyres produced in Mexico are exported not only across North America but also to Latin America and other international markets, making the sector an important contributor to the country’s automotive exports.

CHANGING LANDSCAPE

Although the Mexican tyre industry was once dominated by domestic manufacturers, the landscape has changed significantly. Companies such as Tornel were acquired by international firms as global players expanded their manufacturing footprint in the country.

Díaz noted that these acquisitions accelerated technology transfer and modernised production capabilities, effectively integrating local manufacturers into global supply chains.

Yet he believes the next generation of Mexican tyre companies may emerge through electrification.

According to him, two Mexican start-ups are currently developing tyres specifically for electric vehicles. Unlike conventional passenger-car tyres, EV tyres must withstand significantly greater vehicle weight while maintaining the dimensions and ride characteristics expected of passenger vehicles.

“These aren’t start-ups with four or five people,” he said. “They already employ close to 100 people and are developing tyres for one of the largest electric vehicle companies in United States.”

Unlike many markets where fully electric vehicles dominate industry discussions, Mexico’s transition is being led by hybrids.

With charging infrastructure still concentrated in homes, offices and selected commercial locations, plug-in hybrid vehicles are proving more practical than battery electric vehicles.

While EV sales are growing at roughly 30 percent annually, Díaz said they still represent a relatively small portion of the overall market.

Hybrid vehicles, however, are becoming the dominant technology, reshaping demand across the automotive supply chain including tyres.

CONSUMER PREFERENCES

Consumer preferences are also shifting in other ways. SUVs continue to gain market share across the Americas, while pickups remain popular throughout North America. Small passenger cars continue to sell primarily within Mexico but are growing more slowly than larger vehicles. At the same time, manufacturers are producing larger vehicles equipped with smaller engines as hybrid powertrains become more common.

Asian automakers are another defining trend. “Chinese, Japanese and Korean brands now account for the largest share of new vehicle sales in Mexico, reflecting changing consumer preferences and increasing regional competition,” said Diaz.

Climate is also influencing tyre demand. More intense rainy seasons are driving growing adoption of all-season tyres, which require more sophisticated compounds and engineering than conventional tyres.

“As weather patterns become more extreme, all-season tyres have become an increasingly important business for the tyre industry,” Díaz said.

EXPORTS LEAD

Mexico’s automotive success, however, remains closely tied to exports. Approximately 90 percent of the country’s automotive production is destined for United States and Canada, creating what Díaz describes as a single integrated North American manufacturing market rather than three independent national industries.

“Vehicle components frequently cross borders multiple times before final assembly. While tyres generally move only once or twice, other automotive components may cross the US-Mexico border as many as seven times during production,” he noted.

This integration is reinforced by United States-Mexico-Canada Agreement rules requiring 75 percent regional value content, encouraging manufacturers to source components within North America.

While Mexico’s dependence on exports often raises questions about vulnerability to geo-political tensions, Díaz argues the country’s manufacturing model resembles those of Germany and South Korea.

Instead of viewing exports as a weakness, he sees them as Mexico’s greatest competitive advantage.

MANUFACTURING APPEAL

The country’s manufacturing appeal extends well beyond geography. Mexico enjoys free trade agreements with markets throughout Latin America and is also a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), giving manufacturers tariff-free or preferential access to dozens of international markets.

The country also accounts for roughly 52 percent of Latin America’s advanced manufacturing capacity, making it the region’s undisputed industrial leader.

Equally important is the ecosystem surrounding automotive production. Mexico offers experienced engineers, skilled technicians, established suppliers, mature logistics networks and decades of manufacturing expertise.

“You don’t have to build an industry from scratch,” Díaz said. “The suppliers, knowledge, logistics and the customers are already here.”

The country’s position as the world’s largest exporter of trucks and a production hub for passenger vehicles including BMW models further strengthens domestic demand for both commercial and passenger vehicle tyres.

Unlike emerging manufacturing destinations that may offer inexpensive labour but lack industrial capabilities, Mexico already possesses the specialised workforce and supply chains necessary to support complex automotive production.

CERTAINTY IN UNCERTAINTY

Despite uncertainty surrounding global trade, investment enquiries continue. Some manufacturers have already secured land for expansion, while others remain cautious as they monitor evolving trade policies.

According to Díaz, around 10 to 12 Indian companies are currently exploring investments in Mexico to establish tier-II and tier-III automotive component operations serving North America.

The interest reflects Mexico’s continued attractiveness even after renewed tariff discussions under the Trump administration.

When United States introduced new tariffs shortly after President Donald Trump’s return to office, Mexico initially appeared vulnerable. However, automotive components that complied with USMCA rules quickly regained tariff-free access.

“The direct impact on Mexican auto parts has been minimal,” Díaz said.

Instead, tariff-related costs have largely been absorbed by vehicle manufacturers rather than component suppliers.

Indirect effects have emerged through higher prices for steel, aluminium and other raw materials, prompting manufacturers to reconsider sourcing strategies, particularly for North American-produced steel.

Even so, Díaz believes the overall trading framework continues to function effectively.

LOCAL ADVANTAGES

Mexico’s manufacturing competitiveness is reinforced by strong local sourcing. On average, around 85 percent of tyre materials and related inputs are sourced domestically, with only about 15 percent imported, although specialised products can require significantly higher import content.

Tyres themselves account for approximately 8–9 percent of Mexico’s automotive components industry by value. Efficient logistics further enhance competitiveness.

Rail remains the preferred mode of transport for most automotive exports because production schedules are planned months in advance. Trucks handle regional distribution, while shipping and air freight are used only when necessary.

Energy costs represent another important advantage. Abundant natural gas from neighbouring Texas has helped keep electricity prices among the lowest globally, while Mexico also possesses substantial solar and wind resources.

The remaining challenge lies in expanding transmission infrastructure so electricity generated in one region can be distributed more efficiently across the country.

Manufacturing costs, meanwhile, continue to rise, but so does productivity. Mexico is no longer the ultra-low-cost manufacturing destination it was in the 1970s. However, Díaz said wage growth is increasingly being matched by productivity gains.

Citing projections from the OECD and the Economic Commission for Latin America and the Caribbean (ECLAC), he expects productivity to continue improving over the next five years, allowing higher wages without significantly eroding industrial competitiveness.

HURDLES IN FRAY

The industry’s biggest challenge today is uncertainty rather than costs.

Rapid policy shifts surrounding electric vehicles, changes to the US Inflation Reduction Act, Europe’s evolving emissions regulations and emerging hydrogen technologies are forcing manufacturers to invest simultaneously in internal combustion engine and EV production.

Companies must finance parallel production lines despite demand remaining difficult to predict. “It’s a significant capital expenditure,” Díaz said. “But we know the future is coming, so we have to be ready.”

Mexico’s tyre recycling sector remains comparatively underdeveloped.

Less than 5 percent of end-of-life tyres are processed domestically with most used tyres exported to United States, where larger recycling infrastructure already exists. Domestic recycling operations remain small and largely artisanal.

On policy, Díaz said Mexico currently has no immediate plans comparable to India’s ethanol blending programme, although regulatory changes can be implemented quickly when necessary.

Trade policy, however, continues to encourage localisation. “Imported vehicles that fail to meet Mexican content requirements face tariffs, incentivising manufacturers including motorcycle producers from India to incorporate locally produced components,” said Diaz.

He noted that Mexican suppliers now provide roughly 90 percent of the components used in motorcycles assembled in the country, compared with only about 2 percent when localisation efforts first began.

OPTIMISTIC TURNS AHEAD

Looking ahead, INA expects Mexico to deepen its integration not only within North America but also across Latin America and Europe.

The association believes Mexico’s share of the Mercosur automotive components market could rise from roughly 2 percent today to as much as 10–15 percent over the next five years as manufacturers increasingly seek competitive production bases.

At the same time, European companies facing rising costs and geopolitical uncertainty are shifting portions of their manufacturing footprint to Mexico to serve markets on both sides of the Atlantic.

India will also play a growing role in that strategy.

Rather than simply importing or exporting products, Díaz envisions deeper industrial partnerships extending into third-country markets. “Our job is not to wait and see,” he said. “Our job is to strengthen the relationship.”

For INA, the long-term opportunity extends beyond bilateral trade.

As a member of the G7 association of the world’s seven largest automotive parts-producing countries, Mexico is positioning itself not merely as a manufacturing destination but as a strategic partner helping shape the future of the global automotive supply chain.