Investments Continue to ArriveBy Alejandro Enríquez | Thu, 05/06/2021 - 16:01
Investments continue to arrive to the Mexican automotive sector. GM announced a US$1 billion investment in the country to foster EV manufacturing. Speaking of EVs, the sector in Mexico is experiencing a boost in operations, according to Michelin’s President in Central America. Meanwhile, French company Le Bélier announced a US$68 million investment in Guanajuato.
Regarding sales trends, MG Motors –subsidiary to Chinese holding, SAIC Motor– is expanding its presence in the Mexican market. Also, AMDA and AMAVe present the first-ever report of Mexico's leasing market; highlights include that almost 1 out of 10 EVs are purchased for leasing. EV giant Tesla will open its fourth showroom in Merida, at the South East of the country.
To get on top of the trends, do not miss our expert contributor piece by Guillermo Prieto, president of AMDA. A special mention goes to the close relationship between the aerospace and the automotive sectors in the Bajio area. Do not miss our interview with the President of the Bajio Aerospace cluster.
Ready? This is the week in automotive!
Why is GM Investing US$1 Billion in Mexico?
Last week, GM announced a US$1 billion investment in its Ramos Arizpe manufacturing complex and the inauguration of a new painting and coating plant that will start operations on June 2021. This is only the first step of an ambitious plan that aims to transform GM's manufacturing complex into its fifth most important site after Spring Hill, Factory Zero, Orion, and CAMI. It will begin to manufacture EVs in 2023.
Guanajuato Continues to Attract New Investments
Guanajuato remains the crown jewel of the Mexican automotive sector. Home to Mazda, Honda, Toyota, GM and Volkswagen manufacturing plants and hundreds of automotive suppliers, the state continues to attract investments despite the pandemic. Now, Le Bélier announced a US$68 million investment in San Miguel de Allende.
The Electric Automotive Industry Experiences Boost in Operations
Michelin Mexico aims to start producing tires for electric vehicles for brands like Tesla, Mercedes, BMW and Land Rover by 2022 in its manufacturing plant in Leon, Guanajuato. Pierre Louis Dubourdeau, President of Michelin in Central America, explains that the company will benefit from a platform that ensures EV' growth.
MG Motors Aims to Be a Strong Contender in Mexico
MG Motors, a UK company backed by China’s largest car manufacturer SAIC Motor, is quickly gaining up to other Chinese carmakers operating in Mexico. The company now aims to reach a 1.5 percent participation in the Mexican market and to do so it needs to sell between 15,000 and 16,000 units per year.
AMDA, AMAVe Present First-ever Report of Mexico’s Leasing Market
The Mexican Association of Automotive Dealerships (AMDA) and the Mexican Association of Vehicle Leasing Companies (AMAVe) presented the first-ever report of the Mexican leasing market. Vehicle leasing contributed to foster hybrid (HEV) and electric vehicle (EV) sales. In 2020, out of the 24,405 HEVs or EVs units sold in the country, almost 9 percent were for leasing.
Tesla to Open Fourth Showroom in Mexico
Tesla chose Merida, in the southeast of Mexico, for its fourth showroom in Mexico, taking the city by surprise. "No announcements were made locally or nationally but this news gives us strong signals of Yucatan's exponential growth," local newspapers reported. There are only other three Tesla showrooms in Mexico, one in Guadalajara and two in Mexico City.
Expert Contributor: Inflection Point in the Mexican Automotive Market
"The Mexican automotive market posted mixed results in the first quarter of 2021. On one side, light vehicle sales in the quarter remained in negative territory compared to the same period last year, falling 12.7 percent. But a turning point is finally in sight after an increase of 9.1 percent in March year over year," keep reading this piece from Guillermo Prieto, President of AMDA.
Bajio’s Aerospace Cluster to Help Companies Migrate Sectors
The Bajio region, through its cluster, seeks to expand its aerospace sector by attracting companies from other industries with the necessary capabilities. Up to this point, three automotive companies have started to migrate into the aerospace industry and at least three more are expected to begin the same process.
Guanajuato Takes Leap into Aerospace Sector
Do not miss our interview with Óscar Rodríguez, President of Bajio Aerospace Cluster. "The region has a strong advantage thanks to its advanced automotive industry. The cluster’s new administration is working on mapping out opportunities and we see many ahead thanks to nearshoring trends."
Nissan Mexico Jumpstarts Workplace Innovation with Mayu
Mayu, Japanese for cocoon, is a new digital platform that aims to strengthen multidirectional teamwork and support the exchange of good practices within the organization. In cold numbers, 34,000 members from Credi Nissan, SICREA, ANZEN, Nissan Dealerships and ANDANAC will be integrated in Mayu.