Mexico Automotive Electric Power Steering (EPS) Market, Size 2031

Report Description

Mexico Automotive Electric Power Steering (EPS) Market Outlook 2031

The Mexico automotive electric power steering market size was USD 1.15 Billion in 2022 and is expected to reach USD 1.91 Billion by 2031 expand at a considerable CAGR 5.8% during the forecast period, 2023–2031. The growth of the market is attributed to increase in the frequency of incidents has also prompted end-users to implement improved safety systems.

The Mexican automotive industry grew steadily from 2010 to 2016, with light vehicle sales rising from 803,222 in 2010 to 1,604,000 in 2016. This growth was accompanied by a massive expansion of local production, which boomed for new localization done by new manufacturers such as Mazda, Hyundai, Honda, and Kia, as well as expansion of already existing companies such as Ford and General Motors

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The United States–Mexico–Canada Agreement (USMCA), which took effect on July 1, 2020, contains many revisions to the automobile industry's rules of origin. The USMCA stipulates that a vehicle's content must be produced in North America to the tune of 75 percent (70 percent for heavy trucks) and that essential car parts must come from the United States, Canada, or Mexico.

Original equipment (OE) parts, aftermarket parts, electric and hybrid cars, specialist equipment, and remanufactured goods are the six primary sub-sectors of Mexico's automotive industry. OE components, aftermarket, and electric vehicle parts are among the sub-sectors where the US Commercial Service Mexico sees great prospects.

The Mexico economy is expanding, and middle-class consumers disposable income is rising along with it. This has a favorable impact on the increasing demand for automobiles. Vehicle production has increased dramatically in the last five years as a result of the countries cheap manufacturing prices.

Traffic congestion is a major concern in Mexico City. With traffic levels approaching unacceptably high levels, the city needed to make a substantial shift. As a result, the authorities started steps to restructure transportation and address the issue of on-street parking. The need for parking assist systems will increase as a result of this change.

Electric power steering systems are more fuel-efficient than other alternatives because they do not use belt-driven hydraulic or manual pumps, which operate continuously whether assistance is required or not.

For completely automated driving, electric power steering (EPS) is a crucial technology. Small, mid-range, sports automobiles, as well as light commercial vehicles, can all benefit from the EPS variations. The vehicle steering is controlled by an electric motor on the EPS.

 The EPS manages and supports vehicle steering with the use of an electric motor, resulting in a smooth and enjoyable steering experience. Furthermore, the new generation of control units offers security in the event of a malfunction.

In 2020, sales were down due to the COVID-19 pandemic. In actuality, 949,121 units were sold, a 28 percent decrease over the previous year. The Mexican market started the year badly in 2021, with 259,034 units sold in Q1, a 12.7 percent fall in sales compared to Q1 2020. In Q3, sales continued to climb, but at a slower pace, with 237,322 units sold, a gain of only 4.2 percent.

Market Trends, Drivers, Restraints, and Opportunities

• Rapid demand for higher steering power, to improve driver comfort and feedback is major factors driving the market growth in the coming years.
• Increase in the number of accidents trending the demand for better safety system are anticipated to surge the market.
• Growing trend to owned a personal vehicle also high demand for advance technology with maximum safety features are estimated to fuel the market expansion during the forecast period.
• Rising popularity of self-driving vehicles is expected to boost the market growth in the coming years.
• Roadway and vehicle design advancements have gradually lowered injury and fatality rates is projected to propel the market.
• High price of electric power steering (EPS) components is expected to hamper the market growth.
• Semiconductor shortage act as key challenges that can hamper the market growth during the forecast period.

Scope of Automotive Electric Power Steering Report

The report on the Mexico automotive electric power steering market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Mexico Automotive Electric Power Steering Market Segment Insights

Based on product types, the Mexico automotive electric power steering market is divided into rack assist type (REPS), Colum assist type (CEPS), and pinion assist type (PEPS). The pinion assist type (PEPS) segment is expected to represent a key share of the market during the forecast period due to its widely used for control and assist of the vehicle steering from mid-size to SUVs.

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On the basis of Vehicle Types, the Mexico automotive electric power steering market is segregated into passenger car, and commercial vehicle. The passenger car segment is expected to account for a key share of the market in the coming years owing to its benefits, such as less expensive and low maintenance cost.

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In terms of demand categories, the Mexico automotive electric power steering market is segmented into OEM, and replacement. The OEM segment is expected to represent a key share of the market during the forecast period owing to taking steps to minimize the weight and complexity of their cars, while vehicle manufacturing is expanding internationally.