Brake pads in vehicles, amongst the most crucial components of the braking system, are responsible for vehicle safety & smoother halt. The effectiveness of brake pads depends entirely on the friction materials used in them. With the growing passenger safety concerns & mounting need for enhanced braking at high speeds across Mexico, the demand for brake pads with minimum wear & tear and a high coefficient of friction is rising substantially.
The Mexico Automotive Brake Pads Market is projected to grow at a CAGR of around 3.7% during the forecast period, i.e., 2022-27. Mexico is a hub of automotive manufacturing and has always witnessed a continuous flow of brake pad production & supply. Besides, the country is a prominent vehicle exporter for neighboring countries like Brazil, the US, & Canada, coupled with some European nations.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Key Companies Profiled||Bosch Group, Wagner, ACDelco, Brembo, Akebono Brake Mexico S.A. de C.V., Ferodo, Abex, Sangsin Brake Mexico, Woking Brakes, FRAS-LE|
|Unit Denominations||USD Million/Billion|
According to the US International Trade Administration, Mexico is the sixth-largest passenger car manufacturer across the globe, on an average of producing approximately 3 million vehicles every year.
Moreover, the country has been exporting passenger cars to the US for several years, implying its significant market for brake pads during the historic period. Nonetheless, with the growing inclination toward electric vehicles, the demand for brake pads shall further accelerate in the coming years.
The presence of prominent manufacturers like General Motors (GM) and its constant participation in producing vehicles has played a crucial role in boosting the brake pads market across Mexico.
In 2021, GM announced its plan of investing around USD 1 Billion for electric vehicle manufacturing across the country and would commence operations by 2023, in line with its aim to only offer electric vehicles, by 2035.
Covid-19 Severely Impacted the Mexico Automotive Brake Pads Market
The Covid-19 pandemic in 2020 had an unprecedented effect on Mexico’s automotive industry, owing to which the government had to take stringent actions to curb the virus spread. Like most verticals, the Mexico Automotive Brake Pad Market also observed a direct effect of the pandemic. The strict movement restrictions & lockdown imposition led to a sudden shut down of brake pad manufacturing units, which, in turn, significantly hampered production & supplies.
Besides, travel bans further put a temporary halt on logistics & transportation, which hindered the distribution of brake pads. Moreover, the halted supply chain also brought delays & cancellation of import & export of raw materials & finished goods and introduced massive financial losses to the market players.
However, with the ease of restrictions, the government allowed the commencement of production & distribution of brake pads. Additionally, in this phase of financial uncertainty, the government took several initiatives to swiftly enhance the country's vehicle manufacturing sector, owing to its high reliance on production & exports to other nations.
Based on the Material Type, the Mexico Automotive Brake Pads Market segments into:
Of them all, Semi-Metallic material acquired a notable market share in recent years. It owes to the vast application of semi-metallic materials in several passenger & racing vehicles, primarily due to their high performance & durability in brake pads. Besides, with the rapidly increasing production of passenger vehicles, the demand for brake pads with semi-metallic friction materials has observed a positive impact.
Moreover, the setup of new vehicle manufacturing units in Mexico by several automotive companies hint toward an upswing for the brake pad market during the forecast period. For Instance, in 2021, BMW announced its expansion plan in Mexico to produce its new sports line Series 2 Coupe, with around USD125 million investment.
LCV & HCV to Acquire a Combined Consequential Share in the Mexico Automotive Brake Pads Market
The extensive presence of prominent vehicle manufacturers like Ford, General Motors, & Toyota in Mexico with several production lines for pick-up trucks is expected to directly impact the brake pad market around LCV & HCV vehicle type segment in the coming years.
However, the shortage of Microchips & the Covid-19 pandemic has displayed a dip in their production, states the National Institute of Statistics and Geography, Mexico. Nonetheless, the manufacturing of LCVs is still considerable, with which the automotive brake pads market shall sustain well in the years to come.
On the other hand, the demand for brake pads in Passenger Cars is anticipated to observe significant growth during the forecast period. It owes to the rapidly increasing number of new passenger cars & massive investments by several premium & luxury car manufacturers toward manufacturing advanced sensor-based products for easy braking system inspection & auto-adjustments, reveals MarkNtel Advisors in their research report, “Mexico Automotive Brake Pads Market Analysis, 2022.”
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Mexico Automotive Brake Pads Market is likely to grow at a CAGR of around 3.7% during 2022-27.
A. The burgeoning demand for advanced braking systems in Passenger Cars is expected to create lucrative growth opportunities for the leading players in the Mexico Automotive Brake Pads Market during 2022-27.
A. Massive investments by the leading brake pad manufacturers in the research & development of eco-friendly & lightweight brake pads is the most prominent aspect expected to drive the Mexico Brake Pad Market during 2022-27
A. With the gradual improvements in the pandemic situation, the Mexico Automotive Brake Pad Market is slowly recovering from the losses, principally due to the recommencement of vehicle exports to different countries worldwide.