Automotive Industry to Reach 2019’s Levels by Late 2022: INA

Mexico’s automotive industry has been unable to fully recover to its pre-pandemic production levels. However, the National Auto Parts Industry (INA) expects that by the end of this year, the sector will surpass those production levels and grow its workforce. 

During a press conference, the organization highlighted that automotive production is expected to surpass US$105 billion in 2022, while employment levels are expected to increase by 4 percent. This would be the second highest growth in employment that the industry has seen since 2018. Last year, Mexico’s automotive industry employed 836,000 workers and the sector expects to create 870, 000 new jobs this year.

Innovation is key to this growth. As electromobility gains more popularity, many of the most important automakers around the world continue to see Mexico as a key player. To meet the growing demand, Mexico needs to focus on generating talent, especially in the field of automotive systems engineering. 

According to INA, the sector needs a large number of engineers. Of them, 43 percent must specialize in electrical systems, while other subjects such as interiors, powertrain and vehicle testing will also play an important role in the industry’s future, as reported by Cluster Industrial. 

In 2022, auto parts production is forecasted to grow by 11 percent compared to 2021, mainly due to the increase in demand from the US. Mexico reported a 31.4 percent increase in the production of light vehicles and a 33 percent increase their export, compared to September 2021, according to the Mexican Automotive Industry Association (AMIA). 

"Mexico's exports are remarkable given the low level of exports in 2021, 196,638 units have been shipped throughout 2022,” said Fausto Cuevas, Director, INA, to El Economista. 

Light vehicle sales in the country also grew by 11.6 percent, according to data from Mexico’s National Institute of Statistics and Geography (INEGI), as reported by MBN. The industry reported a total of 778,527 accumulated units sold between January and September 2022, representing an increase of 2.72 percent versus 2021. 

Experts agree that electromobility represents a unique opportunity for Mexico, however in order to reach this potential, support from the public sector is critical. “Regarding Mexico, we add the need to verify that the government's actions are consistent with the aforementioned objectives. Measures, such as the elimination of tariffs for vehicles manufactured mainly in China, go against the expressed regional strategy and create a very delicate situation for the incipient American (Mexican in this case) electric vehicle industry,” wrote Nazareth Black, CEO, Zacua, for MBN.