CIIAM 2021 Grabs the Spotlight: The Week in AutomotiveBy Antonio Gozain | Thu, 11/11/2021 - 12:45
Industry leaders from the USMCA area gathered this week to discuss the main trends affecting North America at the International Mexican Automotive Industry Congress (CIIAM), an event organized by INA in collaboration with Mexico Business. Meanwhile, Mexican car sales saw their worst October in the last 10 years.
Ready? This is The Week in Automotive!
Auto Sector a Priority for the Ministry of Economy
Mexico’s dispute with the US regarding the USMCA rules of origin is moving forward through the treaty’s own mechanisms. The automotive industry is crucial for the country; therefore, the Ministry of Economy considers it a priority, said during CIIAM 2021 Tatiana Clouthier, Minister of Economy, and Luz María de la Mora, Deputy Minister of International Trade.
Mexican Industry Must Keep Up with Electrification Trends
Mexico has 120 years of history in the automotive industry and has managed to become a cornerstone when it comes to ICE vehicle global production. However, to remain a key player at the international level, the country must transition to electromobility, said during CIIAM 2021 Nazareth Black, CEO, Zacua.
Taking the Next Step Through Collaboration with Canada
Through partnerships with their Canadian counterparts, Mexican automotive companies can venture into the future in terms of growth and prosperity but, most importantly, in terms of innovation, said Canadian Ambassador to Mexico Graeme Clark. “Mexico’s automotive players should think of Canada as a strategic ally in their expansion plans. We are convinced that an important part of your long-term objectives should be your internationalization process.”
North American Production Recovery Delayed
Even as the effects of the pandemic winded down thanks to successful vaccination campaigns, this year came with its own set of challenges for the sector. Namely, the worldwide shortage of microchips, the transition to USMCA from the decade-old NAFTA and an increased focus on sustainability through environmentally-friendly means of production and electric vehicles. Recovery from the pandemic now seems like it will take longer than previously expected, said during CIIAM 2021 Guido Vildozo from IHS Markit.
Read here our complete CIIAM 2021 coverage, featuring Toyota, BMW Group, Mazda, General Motors, CCE, CONCAMIN, COPARMEX, Deloitte and much more!
How the Mexican Used-Car Market Changed in the Pandemic’s Wake
Expert Contributor Lorena Isla, Director of Mobility Latin America, Frost & Sullivan, writes about the changes suffered by the used-car market amid the pandemic and its impact in new vehicle sales.
Car Subscriptions: The Future of Vehicle Ownership?
The COVID-19 pandemic boosted diverse trends across industries. In the automotive sector, OEMs are beginning to offer vehicle-subscription plans in a “car-as-a-service” model as an alternative to leasing, car rental and purchasing. While Mexican culture has favored traditional car ownership, vehicle subscriptions could become popular among younger generations in the next years.
Read the full analysis here.
Consequences of “Chocolate” Vehicle Regularization
As the automotive industry goes through one of its most critical crises in the recent years, President Andrés Manuel López Obrador signed a regularization decree for the so-called “chocolate” cars, which could severely damage the sector. Read the full analysis here.
Mexican Car Sales See Worst October in 10 Years
Sales of light vehicles in Mexico saw their worst October since 2011. The number of sales decreased by 7,771 vehicles from last year’s October to this year’s. In October 2020, the industry sold 84,351 light vehicles but in October 2021 it barely reached 76,640 sales. In September 2021, which also reported the worst sales for the month in a decade, the industry sold 76,930 light vehicles.