Mexico Celebrates Strong Exports, Battles Domestic Recovery
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Mexico Celebrates Strong Exports, Battles Domestic Recovery

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Alejandro Salas By Alejandro Salas | Senior Editorial Manager - Wed, 02/16/2022 - 12:38

Mexico remains strong as the US’ main trading partner in transportation equipment. However, domestic sales results have still not quite bounced back as limited purchasing power and ongoing semiconductor shortages continue to plague the industry. Still, amid this challenging environment, the SUV segment is gradually consolidating as a permanent contender in the local market.

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New USMCA Panel Expected for 2022

Minister of Economy Tatiana Clouthier announced her expectations for a discussion panel to address the issue of rules of origin for the automotive sector within the next six months. The US keeps pushing for stricter standards while Canada and Mexico lobby for the treaty to remain as it was negotiated. “Everybody except for the US government agrees that we negotiated something else,” says Clouthier, according to Bloomberg.

Audi Ramps Up Production at San Jose Chiapa Once Again

After limited production activities due to COVID-19 contagion risk, Audi has announced the reactivation of a third shift starting on Feb.14 to produce the Q5. The company will resume activities following 137 safety measures against COVID-19, including mandatory facemask use, social distancing, constant disinfection and temperature checks, reported Milenio.

Toyota Celebrates Hybrid Sales in Mexico

Japanese automaker Toyota has sold over 85,000 hybrid models in Mexico since its first eco-friendly model arrived in the country in 2010, signaling a stronger presence for electric and hybrid vehicles in the country. Today, Toyota dominates the hybrid market and represents 85 percent of hybrid sales, according to INEGI.

Mexico Strengthens Its Automotive Muscle in the US

Mexican exports to the US in the area of transportation equipment, according to the NAICS-3 classification system, reached US$119.02 billion in 2021, according to data from the International Trade Administration of the US’ Department of Commerce. This represented an increase of 13 percent against numbers from 2020 and it puts results only 6.9 percent below the all-time high recorded at the end of 2019. This reinforces Mexico’s position as the US’ main trading partner in this market segment, well above Canada’s US$50.2 billion exports.

SUVs Gain Ground in Mexican Market

Amid an ongoing contraction in light vehicle sales, SUVs stand out as a growing market segment, even above the traditionally popular compact and subcompact segments. According to AMDA, of the 78,585 vehicles sold in January 2022, 27,709 were SUVs, representing 35.3 percent of the total sales. The SUV segment was the only one that registered positive results against January 2021, with growth of 17.1 percent.

BMW Worried About Energy Reform

The OEM is implementing an aggressive electromobility plan for 2022, according to Maru Escobedo, CEO, BMW Group México. However, the proposed reform is threatening BMW’s sustainability plans as the company would not be able guarantee the sourcing of clean energy. “We worry about not having clean energy. BMW’s strategy is to gradually move toward this type of energy,” said Escobedo during a press conference, according to El Economista.

Jaguar Land Rover, Nvidia to Collaborate in Vehicle Software Race

Luxury automaker Jaguar Land Rover announced a collaboration with artificial intelligence company Nvidia to develop automated driving systems powered by AI features for Jaguars and Land Rovers launching in 2025 and beyond.

“Jaguar Land Rover will become the creator of the world’s most desirable luxury vehicles and services for the most discerning customers. Our long-term strategic partnership with NVIDIA will unlock a world of potential for our future vehicles,” said Thierry Bolloré, CEO, Jaguar Land Rover, according to an Nvidia release.

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