Mexico to Become Auto Parts Hub for Electric Heavy Vehicles
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Mexico to Become Auto Parts Hub for Electric Heavy Vehicles

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Eliza Galeana By Eliza Galeana | Junior Journalist & Industry Analyst - Wed, 08/02/2023 - 14:15

Representatives of the national heavy vehicle industry are preparing to increase the regional content of heavy vehicles from 60% to 64% by 2024 in accordance with USMCA. To accomplish this goal, they have partnered with INA to boost the production of auto parts for electric vehicles. 

Mexico aims to become the auto parts hub for electric and zero-emission heavy vehicles in North America. Javier Valadez, Operations Director in Mexico, Kenworth, an American truck manufacturer, explained that Mexico faces the challenge of increasing the regional content of heavy vehicles, as established in USMCA, from 60% to 64% starting from July 1, 2024. The objective is to meet the highest regional value requirements for these vehicles and essential auto parts.

To achieve this, the trucking sector is working hand in hand with the auto parts industry. “The heavy vehicle sector is interested in electric and zero-emission vehicles, but a significant portion of their components come from China, so they do not meet the regional content values. We want to promote national and regional development of these components that constitute a large part of the total vehicle value,” said Valadez. 

According to the director, this partnership represents an opportunity to strengthen regional value chains and attract greater investments. Moreover, it involves advancing in the production of zero-emission units and components. In this regard, INA and ANPACT signed a collaboration agreement to promote zero-emission vehicle production. The initiative seeks to establish a synergistic relationship among industry players, authorities and academia, as reported by MBN

Valadez pointed out that the industry must anticipate the review of USMCA. “We do not know what changes might occur, which is why the heavy vehicle industry has come to an agreement with INA to develop plans and align projects to build sustainable trucks,” he said. It is expected that in a few years, 50% of the sector's production will be focused on electric trucks.

Miguel Elizalde, Executive President, ANPACT, stated that the focus should be on increasing regional content of heavy vehicles. “The major challenge is to have batteries and motors from the region, which are the main components we need to develop. These do not necessarily have to be developed in Mexico, they can also come from the US or Canada. However, in Mexico, we have suppliers for a wide variety of components,” he highlighted.

Photo by:   Envato Elements

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