Authorities, EV Makers Clash on Charging Tech

A discord is emerging between authorities and electric vehicle (EV) manufacturers regarding the optimal technology for charging stations. Additionally, users are expressing frustration over automakers sharing driving behavior data with insurance companies, leading to rate hikes. In other developments, Yokohama Rubber plans to construct a US$380 million tire plant in Mexico. Additionally, explore insights from key participants at the Mexico Nearshoring Summit 2024.

This is the week in automotive!

CRE, EV Manufacturer Talks on Charging Tech Raise Concerns

The discord between Mexico's Energy Regulatory Commission (CRE) and electric vehicle manufacturers regarding the definition of charging technologies for electric vehicles has raised concerns among experts about its potential impact on electric vehicle sales.

Automakers Data-Sharing Spurs Insurance Rate Hike

Automakers such as General Motors (GM), Kia, Subaru, and Mitsubishi are increasingly involved in the gathering and sharing of detailed driving behavior data with insurance companies, prompting worries about consumer privacy. This practice involves collecting driving data through internet-connected vehicles and sharing it with insurers via data brokers like LexisNexis and Verisk, resulting in significant hikes in insurance premiums for drivers.

Yokohama Rubber to Build US$380 Million Tire Plant in Mexico

Japanese tire manufacturer Yokohama Rubber has unveiled plans to build a state-of-the-art tire plant in Coahuila, Mexico. This move aims to bolster the company and allow it to cater to the burgeoning demand for tires in the North American market.

The Energy Factor: Decarbonizing Mexico's Automotive Industry

With estimates suggesting that electric vehicles (EVs) could constitute up to 75% of automotive sales by 2030, the imperative to decarbonize Mexico's automotive sector becomes increasingly apparent, as highlighted in discussions at Mexico Nearshoring Summit 2024. Decarbonization, however, does not only refer to electrification but to how the electricity consumed by vehicles is generated. 

The Mexican Gateway to Global Chinese Auto and Energy Industries

The arrival of Chinese automotive companies in Mexico marks a significant milestone in the globalization of the automotive industry. China, as a major player in the global automotive market, presents Mexican companies with opportunities for partnerships, investments, and technology transfers amidst the famous nearshoring trend.

Chinese Automotive OEM Achievements and Ambitions in Mexico

Representatives from Chinese automotive OEMs deliberated on their achievements, challenges, and aspirations for entering and establishing a foothold in the Mexican market. They emphasized integration into Mexican production lines and the growing acceptance of EV vehicles due to their quality and continuously improving post-sales service.

Integrating Mexican Manufacturing in North American Supply Chains

In 2023, the United States made more purchases of goods from Mexico than from China, marking the first occurrence in two decades, according to the US Commerce Department. The value of goods imported by the United States from Mexico witnessed a nearly 5% increase from 2022 to 2023, surpassing US$475 billion. Meanwhile, the value of Chinese imports experienced a 20% decline, reaching US$427 billion. The last time Mexican goods imported by the United States exceeded the value of Chinese imports was in 2002.

Mexico, US, China: Tariffs, Talent, Energy, Nearshoring Future

The intricate interplay of tariffs, talent availability, trade agreements, energy infrastructure, security concerns, and the rule of law is fundamentally reshaping nearshoring investments among Mexico, the United States, and China. These factors, bolstered by data-driven insights, are not merely influencing manufacturing decisions but also restructuring strategic alliances and competitive landscapes across the region.

The Importance of Developing Electric Powertrain

As the effects of the global warming crisis become more evident, the transition to cleaner mobility alternatives, such as electric vehicles (EVs), is accelerating. However, this shift poses additional challenges, as supply chains become more complex and meeting market demands becomes more challenging, highlights Antonio Rodríguez, Head of Mexico, Vitesco Technologies.

Optimizing Electrified Vehicle Production Amidst Nearshoring

While Mexico endeavors to attract nearshoring investments, it must reassess the factors that appeal to investors, particularly as global capitals prioritize locations aligned with their environmental objectives, as per insights from Toyota Motor de México.