MJS: COVID-19 Crisis An Opportunity for AftermarketBy Alejandro Enríquez | Tue, 01/26/2021 - 06:00
Q: What problem do MJS Manufacturers help the automotive industry to solve?
A: We are a distributor of aftermarket products that companies cannot find in Mexico. We manage 15 brands. There are three advantages that we offer in the Mexican market: price, opportunity, and coverage. Some of our brands offer great quality while others manage a more competitive price for the Mexican market. Regarding coverage, we work in areas that other distributors in the country do not reach. Depending on the requirements of each client, we find the brand that best suits their needs.
MJS Manufacturers began operations in 1992 in Baja California and the US. Within three years, we already had coverage throughout Mexico. As of 2010, we also have a presence in Central and South America, except Brazil and Argentina.
Q: Growth in the Mexican automotive industry has stalled since 2016. How can MJS Manufacturers be an ally in its recovery?
A: As in any crisis, there are losers and winners. In 2Q20, US GDP was down 32.9 percent. OEMs estimate a similar drop in sales of 25 to 30 percent. We hope that this situation will help the aftermarket. With new car sales on the decline, people require more spare parts for their used vehicles. Moreover, as a result of the pandemic, we have designed a strategy with the brands in our portfolio to have more stock in Mexico. Most of our allies in the country are auto parts wholesalers. We also continue to work hand in hand with promoters to redirect and promote our products at mechanical workshops.
Regarding the economic recovery and based on the estimates of when we will get a vaccine, recovery could take more than a year. We are confident that our company will not be as affected as those in other industries, but so far everything is uncertain.
Q: What has been the company's strategy to take advantage of the e-commerce boom?
A: It is definitely a trend that is growing at great speed. Some of our clients have already started exploring these sales channels. However, we do not sell online yet. Any product that our clients require arrives at the border with the US or a port if the product comes from Asia.
Q: What are MJS Manufacturers' plans for 2020 and 2021?
A: These months have been very hard for us as product imports stopped and the exchange rate widened. Fortunately, about a month ago this situation returned to normal. For 2021, we plan to invite the brands that we represent to establish in Mexico, not only to regionalize the supply chain but to be prepared for any eventuality. Due to the COVID-19 crisis, some are already considering setting up WD’s in Mexico in the short or medium term.
MJS Manufacturers is a Mexican distributor of auto parts from North America and Asia. The company covers Mexico, Central America, and South America