Electromobility and Employment: Opportunities, Challenges

The Metal-Mechanic Industry Workers’ Union (SITIMM) warned that the transition to electromobility could jeopardize employment in the auto parts industry by up to 30%. Meanwhile, INA reported that employment rates in the sector will grow 2.9% in 2023. 

Alejandro Rangel, Secretary General, SITIMM, pointed out that the shift from internal combustion engines to electric drivetrains could result in thousands of job losses in the automotive parts sector. He explained that an electric vehicle has 40% fewer parts than a combustion engine unit. "The transition from one technology to another would cut hundreds of job positions in supplier plants, as manufacturing and maintenance become less complex compared to a gasoline-powered car," said Rangel. 

Rangel noted that the construction of a traditional gasoline engine involves pistons and fuel injection systems that require oils and other cooling components. However, an electric motor does not need any of that, so at least 500 components would no longer need to be manufactured. He highlighted that only the arrival of new companies, employee training and new business could help to support the employment rate.

AMDA underscored that the Mexican automotive industry has to adapt to the electromobility transition by reskilling and upskilling. The first concept refers to the new skills that employees must acquire to respond successfully to changes in the sector. The second is related to the adaptations that can be made in job positions with the same objective. 

INA, on the other hand, asserted that Mexico has the capacity to generate the qualified human talent required to address the new needs in the industry. "We are working on creating courses and training programs for individuals already working in the sector, as well as updating academic plans for the youth," stated Omar Martínez, Manager of Original Equipment and Aftermarket, INA. 

Martínez pointed out that new skills in electromobility are scarce at a global scale, which represents a significant opportunity for Mexico to become a strategic player in this field. He stressed that abilities related to areas such as embedded software, systems engineering, cybersecurity, as well as edge computing, cloud computing, data analytics and artificial intelligence are key for the transition. “These skills represent some of the technological needs behind the latest developments linked to this trend and can be learned through reskilling,” said Martínez. 

Due to the growing need for electric vehicle components, INA predicts that employment rates in the auto parts industry, which is forecasted to reach a value of US$112 billion by the end of 2023, will grow by 2.9% for a total of 903,000 people employed.