Auto Industry Presents Opportunities to Mexico's Candidates

Representatives from key industry associations, including AMDA, AMIA, INA, and ANPACT,  presented a document outlining the strengths and opportunities of the automotive sector to Mexico’s presidential candidates. This document underscores the critical role of the industry, which significantly contributes to the country's GDP and attracts substantial foreign direct investment.

Titled 'Automotive Dialogue 2024', the document highlights the sector's challenges and demands, aiming to attract foreign investment and transition to sustainable mobility in Mexico. The industry leaders also propose reforms to enhance public and legal security for the automotive sector's future sustainability. Additionally, it emphasizes the need for coordination between industry stakeholders and authorities, underlining the significance of the US-Mexico-Canada Agreement (USMCA) and advocating for its positive review.

Odracir Barquera, Director, AMIA, stressed the necessity for clean and renewable energy sources to support new investments, citing concerns over the stagnation in energy infrastructure development over the past 12 years.

Guillermo Rosales, Executive President, Mexican Association of Automotive Distributors (AMDA) advocated for decarbonization and technological advancements in the Mexican automotive industry, calling for fiscal incentives to encourage the acquisition of electric vehicles. Industry leaders also emphasized the urgency of incentives to expand the base of semiconductor, battery, and software suppliers, which are crucial for Mexico's automotive sector.

Virginia Olalde, Director of Foreign Trade and Economic Studies, ANPACT, underscored the document's reflection of the automotive sector's commitment to a sustainable future, emphasizing decarbonization and fleet renewal with financial instruments. “We must develop more energy infrastructure capable of satisfying both industry and societal needs,” she said.

Armando Cortés, Director General, INA, emphasized the critical need for clean and adequate energy to ensure sustainable growth, along with customs and trade facilitation to maintain global competitiveness.

“We are past the era of a single dominant transport technology, that is over. Nowadays, we have access to at least four working technologies in electromobility and we must be ready for more to come”, Cortés said.

Regarding the impact of the US-China trade war on Mexico, industry leaders downplayed the recent imposition of US tariffs on goods manufactured in China. They emphasized that these tariffs are a domestic issue within the United States, particularly amid the backdrop of forthcoming elections.

Rosales provided context, stating, "The political decisions by the United States to establish tariff barriers on products originating from China are part of a geopolitical stance, especially during an electoral period preceding the presidential election and various state and congressional elections in the United States."

Additionally, Rosales clarified that the Mexican automotive industry is primarily focused on growth strategies. "We are engaged in building a joint strategy in Mexico with the authorities, academia, and society to strengthen the role of the automotive industry in our country, using all available instruments, including compliance, modernization, and adherence to the Mexico-US-Canada treaty, which guides our trade relationship with the United States and Canada. We interpret everything else within the context of domestic relations in the United States," he added.