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News Article

Mexican Automotive Industry Recovers 76 Percent of Lost Jobs

By María Fernanda Barría | Wed, 02/17/2021 - 08:42

The Mexican automotive industry seems to be recovering from the fears that arose during the pandemic when many automakers were forced to suspend production due to COVID-19 and the decline in demand. Today, the data in this sector is positive. According to INEGI, the industry has managed to recover 76.2 percent of the jobs lost. “The automotive industry has almost the same figures it was showing at the end of 2020. We are recovering,” said Óscar Albín, President of INA, to El Financiero. According to INEGI, “between March and June 2020, 64,285 people lost their jobs in the automotive sector but by October 2020, 49,017 of those jobs had been recovered.”


The pace of recovery shown by INEGI supports the optimistic forecasts of some representatives of INA and AMIA. They foresee 12 percent growth in automobile assembly and 50 percent growth in auto parts production in 2021. Industry representatives and executives from companies in the sector told El Financiero that this improvement could be explained by the economic recovery that the US has experienced in recent months. There, demand has recovered strongly and the adoption of safety measures to protect employees’ health has allowed them to maintain a reasonable production rate.


However, forecasts are not so optimistic on the sales side. According to AMDA, the red traffic light that was implemented in many states and cities of the country, leading to the closure of all non-essential establishments, meant a loss of 8,117 jobs, 6 percent of the total number of people working in the sector in 2019. “The figure, while not too high, is indeed problematic. Many employers are still adapting and adjusting their expenses, which could mean more job losses,” said Guillermo Rosales, Director General of AMDA.


According to Deloitte, the Mexican automotive industry accounts for 3 percent of the country’s GDP and 1.8 percent of all jobs. Besides, Mexico is the third-largest vehicle exporter, the seventh-largest light-vehicle exporter and the seventh-largest engine producer.
 

The data used in this article was sourced from:  
El Financiero, INEGI, Products Finishing Mexico
María Fernanda Barría María Fernanda Barría Junior Journalist and Industry Analyst