Automotive Exports Up 42.5 PercentBy Conal Quinn | Thu, 09/29/2022 - 09:47
Among this week’s top stories, Mexico’s automotive exports were up 42.5 percent in August, while KIA is set to invest US$408 million to increase production capacity at its assembly plant in Nuevo Leon.
Ready for more? Here are this week’s top Automotive stories!
In August 2022, Mexican automotive exports grew by 42.5 percent year-over-year, surpassing the growth of other manufactured exports and setting a record for the year, reported INEGI. Altogether, exports of manufactured products increased by 0.97 percent month-over-month due to the 8.65 percent growth of automotive exports and the 2.48 percent contracture of non-automotive manufacturing exports.
Although Mexico has historically been a promised land for manufacturing and maquila operations, companies across all industries, including the automotive sector, are getting more interested in the country’s potential for R&D and engineering operations and are starting to invest accordingly. However, several indicators show that much work by the government, academia and private sector remains to be done for Mexico to move from a manufacturing to a mind-facturing approach.
The Mexican government announced an extension to the program to regularize “chocolate” cars, changing the deadline from Sep. 20 to Dec. 31, 2022. Furthermore, Jalisco was added to the list of states covered by the program. "On the President's instructions, given the demand for appointments, the deadline for the program has been extended to Dec. 31, and the state of Jalisco has also been added to the list where there will be service modules," said Rosa Icela Rodríguez, Federal Ministry, Public Security, as reported by Animal Político.
BrightDrop, a subsidiary of General Motors, launched Trace Grocery to support the sustainable and efficient delivery of groceries purchased online. The eCart can identify, collect and store products and aims to ease the work of grocers by allowing them to put orders directly into the unit. “COVID-19 has driven a dramatic increase in online grocery shopping and fulfilling these orders profitably has become a major challenge for retailers of all sizes. With Trace Grocery, we saw an opportunity to help companies like Kroger tackle these challenges head-on,” added Katz.
Korean automaker KIA Motors announced a US$408 million investment to increase production capacity at its assembly plant in Nuevo Leon, Mexico. The expansion will allow KIA to increase manufacturing from 250,000 cars per year to 400,000 and create 800 new jobs. The company has already spent US$67 million of this amount on infrastructure improvements. KIA manufactures the Rio, Forte and Hyundai Accent in the plant in Pesqueria, Nuevo Leon, and exports up to 80 percent of production to over 45 countries around the world. The company started operations in the country in 2016 and since then, it has manufactured over 1.5 million units and invested more than US$3 billion in Mexico.
Due to various positive factors, automobile dealers could expect to record their fastest revenue growth in three fiscal terms with sales accelerating between 20 and 25 percent year-on-year on the back of a 12 to 14 percent volume growth, a report said on Wednesday. This will be aided by increasing preference for personal mobility, higher economic activity, easing supply-side constraints, shift in product mix towards higher priced vehicles and price hikes of from 5 to 7 percent, Crisil Ratings said in its report.
Porsche's landmark listing is defying market turmoil giving a welcome boost to a battered pipeline of share sales, but the deal is unlikely to open the floodgates, bankers and analysts say, with European listings facing their worst year since 2009.
Hertz Global Holdings Inc (HTZ.O) said on Tuesday it has partnered with a unit of oil giant BP to install electric vehicle (EV) charging stations across North America to power its fleet of eco-friendly cars.