OEMs Push Decarbonization in Mexico’s Auto and Aerospace

Manufacturing remains a major source of industrial emissions. While automotive and aerospace OEMs have improved engines and turbines to reduce vehicle emissions, voluntary global carbon neutrality agreements—without enforcement—are insufficient. The primary challenge  is cutting emissions during the production of vehicles and components. To address this, companies worldwide have adopted ESG policies, modifying processes and materials to minimize environmental impact. These initiatives are far more effective when combined with strict regulations and specialized certification bodies, such as Airport Carbon Accreditation (ACA), which guides airports through progressive emission reduction levels. Similar organizations exist for automotive and aerospace manufacturers, promoting standards that exceed minimum regulatory requirements.

OEM Decarbonization Commitments

Leading global OEMs have established clear decarbonization targets aligned with international agreements like the Paris Agreement, as well as industry frameworks from IATA, ICAO, and OICA. These commitments impact operations in Mexico. For instance, General Motors has implemented renewable energy in its facilities and increased the use of recycled materials across the product life cycle. In 2023, GM reported that the steel used in its plants in the United States, Canada, and Mexico produces up to 75% fewer emissions than conventional steel, supporting Scope 3 emission reductions.

In aerospace, similar efforts face additional challenges due to the artisanal and specialized nature of production. Companies such as Safran, Airbus, and Bombardier, operating in states including Querétaro, Baja California, and Sonora, have implemented energy efficiency, waste reduction, and renewable energy policies. While cleaner technologies in Mexican operations are limited, these OEMs influence local suppliers to adopt international environmental standards that exceed national regulations.

“We work with OEMs and suppliers of all sizes. From small component makers to aircraft assemblers, all are our clients. When they collaborate with us, they quickly understand the importance of certifications,” says Felipe García, Business Development Manager, British Standards Institute (BSI).

The Mexican Federation of the Aerospace Industry (FEMIA) supports collaboration between local companies and international OEMs through certification programs and networking events, fostering best practices in sustainability. Yet both automotive and aerospace sectors face common obstacles: dependence on OEM policies and limited government incentives restrict the independent implementation of large-scale decarbonization initiatives.

A successful sustainability transition requires internal innovation, investment in clean technologies, and public policies that promote renewable energy, efficiency, and electrification. Only then can companies meet global decarbonization targets while maintaining competitiveness.

“The future is electric, but the transition is slower than expected. In the meantime, we develop products that balance fuel efficiency and emissions reduction while meeting cost and performance expectations,” explains Ramiro Gutiérrez, President, ZF Group.

Mexico’s Role in Global Decarbonization

Mexico has actively engaged in global decarbonization through international commitments, strategic planning, and energy transformation projects aimed at 2050–2060. The country submitted its first Nationally Determined Contribution (NDC) under the Paris Agreement,in 2015 and updated it in 2022, raising climate ambitions. Current target include a 35% reduction in GHG emissions by 2030—30% financed domestically and 5% via international cooperation. The electricity sector target increased from 31% to 53% relative to baseline, requiring investments in generation, efficiency, low-carbon technologies, and renewables.

“Aligning regulations with international standards ensures competitiveness in emission reductions and strengthens the supply chain. By investing in education and energy, we mitigate disruptions and secure sector stability,” says Marco Antonio Del Prete, Minister of Sustainable Development of Queretaro.

Global OEM pressure drives the Mexican automotive industry’s sustainability efforts. Many standards originate from European regulations tied to corporate headquarters rather than local policies. Suppliers invest in energy efficiency, certifications, and low-carbon technologies to maintain their place in the value chain, largely funding adaptations themselves.

Aerospace faces additional challenges due to artisanal production and reliance on global OEMs, whose emissions reduction targets—such as 50% by 2050—require technologies still in development. Mexican suppliers adopt client-imposed environmental standards, often stricter than local regulations, with limited institutional support. Investment in efficient machinery, energy monitoring, and low-carbon materials largely comes from private capital.

Energy Efficiency and Renewable Integration

Automotive and aerospace companies increasingly invest in electric, hydrogen, hybrid, and more efficient combustion engines. Energy efficiency in manufacturing, especially via automation and optimized assembly processes, enables significant emission reductions. Measures like sequential machinery startup and proper maintenance prevent energy waste.

“Hyundai’s Singapore plant operates almost entirely without human operators, using advanced robotics. This innovation center explores new manufacturing methods beyond traditional assembly lines, improving efficiency and reducing costs,” explains Edgar Carranza, COO, Hyundai.

Advanced sensor systems and real-time energy monitoring allow companies to track machine performance, compare actual versus estimated capacity, and optimize processes.

“Digitalizing production and quality operations has been ongoing for years. Extending digitalization to energy efficiency reduces consumption, improves data-driven decision-making, and optimizes resources,” says Ernesto Sánchez, CEO, Seeräuber.

OEMs increasingly require their supply chains to meet these energy and sustainability standards, creating positive spillover effects. Many Mexican suppliers of European brands have invested in process optimization and certifications to integrate into global value chains.

“Lack of management commitment delays training and investment. Companies resistant to change or those that implement processes only as they grow risk inefficiency,” says Felipe García, BSI.

The automotive sector targets carbon neutrality across the value chain by 2050, while aerospace aims for a 50% emissions reduction by 2050. The latter’s artisanal nature and slower automation adoption make progress more challenging. García notes, “Automotive companies with established ISO 9000 and IATF 16949 systems can transition into aerospace manufacturing more easily.”

Follow our MBS 2025 tag and do not miss our coverage leading to Mexico Business Summit 2025 on October 28–29, 2025. On Tuesday, July 29, 2025, we will delve into how supply chain optimization can help companies counter geopolitical uncertainty. 

Interested in staying ahead in the nearshoring landscape? Mexico Business Summit 2025 offers exclusive insights from leading industry experts and government officials on the key trends, risks, and opportunities fueling Mexico’s emergence as a global nearshoring powerhouse. Discover how supply chain innovations, workforce development, and sustainability strategies can strengthen your competitive edge.

Register now to secure your place and position your business at the forefront of this dynamic market: https://mexicobusiness.events/MBS/2025