Mexico Still Strong Despite Global HeadwindsBy Andrea Villar | Tue, 11/12/2019 - 17:20
A trade war between the US and China, low interest rates, alternative business models and growing EV platforms are all shaping the automotive industry. Even against headwinds and a winding domestic market, Mexico's automotive future seems promising.
In early 2019, Global Leader for the Automotive Industry, Mobility and Advanced Manufacturing of EY Randall Miller had positive forecasts for the industry. Now, just one month away from the end of the year, some predictions still go while others got lost due to the circumstances. On the plus side, the market is still predicted to be at 93 million units sold globally in 2019 as Miller originally stated. However, Mexico is going to have slower growth than regions like India, Western Europe or the US.
“I do not think the US is going to make it to the 17 million units I thought. We are also going to see a little bit of positive movement in China, which will reach around 27 million units from the 26 million originally forecasted, which I think is a very good indicator of that positive things will come to the region. Unfortunately, I see slower growth in Mexico,” said Miller at the EY Wavespace in Mexico City on Tuesday, November 12.
Regardless, the Global Leader for EY said Mexico remains a bright spot due to its high-quality manufacturing, reasonable costs and qualified labor force. His positiveness comes as a result of relatively low interest rates, strong consumer confidence and the rise of alternative technologies like electrification, blockchain and autonomous platforms “that hopefully will start to generate some real revenue for automotive companies,” said Miller.