Mexico Retains Seventh Place in Global Vehicle Production
Mexico has maintained its position as the seventh largest manufacturer of light vehicles in the world for the third consecutive year, according to data from the International Organization of Motor Vehicle Manufacturers (OICA). The country produced over 3.5 million units in 2022, a figure 10% higher than the previous year.
Despite supply chain problems and the shortage of raw materials, Mexico reinforced its manufacturing capabilities, producing only 168,748 and 247,977 less vehicles than Germany and South Korea, respectively. Mexico's growth in the automotive industry shows promising results for the country's future in the global market.
China retained its position as the world’s largest manufacturer with 27 million cars assembled, followed by the US with 10 million, also a 10% increase when compared to 2021. Next was Japan with 7.8 million units and India with 5.5 million units. The latter country had the highest growth, increasing its production by 20.6%.
India has been playing a significant role in the manufacture of vehicles in recent years, surpassing Mexico, South Korea, and Germany, and aims to become a key player in the electromobility transition.
Digitization: Key to Boost Productivity in Manufacturing Lines
During the Mexico Automotive Summit 2023, industry leaders gathered to discuss the crucial aspects influencing the sector, including key challenges the country has to face to achieve its full potential.
Mexico, long recognized as a manufacturing powerhouse in the sector, must commit to invest in digitalization to maintain its status. The entire industry, including automakers and suppliers, benefit from enhanced supply chain optimization, which directly impacts competitiveness and safety, industry experts agree.
During the event, experts forecasted that interconnected, electric-powered vehicles will promote sustainability and safety, a view that has gained widespread support. Digital tools, implemented throughout the industry, will also benefit end consumers. “Digitalization in the manufacturing fields helps businesses to have a real-time context on the current state of the plant, which allows them to make better and faster decisions in the heat of the moment,” says Federico Crespo, CEO, Valiot.
The COVID-19 pandemic has compelled the industry to blend engineering, logistics, manufacturing and production, demanding previously unknown levels of flexibility. In this regard, technology tools like AI, IoT and ML are instrumental in exponentially enhancing production lines. According to Ana Nuñez, Digital Supply Chain Account Director, SAP, companies must prioritize realistic solutions that align with the principles of lean manufacturing to approach the affordable and practical implementation of digital technologies.