Weekly Roundups

Production, Exports, Sales Hit Hard by Shortages

By Antonio Gozain | Thu, 10/07/2021 - 16:00

Semiconductor shortages are hitting the Mexican automotive industry hard. USMCA is changing unionization, following the first successfully concluded labor complaint under the new rapid response mechanism. Meanwhile, Audi presented its Q5 Sportback, the newest Mexican export to the world.


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Auto Exports Still Below Pre-Pandemic Levels

Mexico will close 2021 with exports worth US$460 billion, an 11 percent increase compared to the US$417.6 billion reported in 2020 when the COVID-19 pandemic first hit, according to the Mexican Business Council for Foreign Trade (COMCE). While the automotive sector’s participation in national exports increased from 27.8 to 28.8 percent in the first 8 months of 2021, it is still below pre-pandemic levels when it represented 32.2 percent of total Mexican exports, stated INEGI.

Automakers’ Electrification Targets

Electrified vehicles are at the core of ambitious goals toward a more sustainable auto sector. Over the last two years, many light-vehicle manufacturers have announced and updated their goals regarding electrification and the role that EVs will play in their long-term strategies. Some automakers have set clearer targets than others and some have broader plans regarding Mexico’s participation in this green transition. Read the complete analysis here.

Transformation During Difficult Times

The automotive industry in Mexico continues to adapt to urgent circumstances. In the aftermath of the pandemic, a shortage of supplies and logistics constraints are slowing the pace of manufacturing lines. Meanwhile, the ongoing transformation toward connected, autonomous, shared and electric mobility is more evident than ever. Read the complete analysis here.

How USMCA is Changing Labor Issues

USMCA did not only introduce challenges in terms of tougher rules of origin for automotive goods but also resulted in cohesive labor standards validated by Mexican reforms. Part of the process includes the new USMCA rapid response mechanism, which changes how employment issues are viewed and addressed in Mexico. Read the complete analysis here.

Light Vehicle Sales See Worst September in 10 Years

Light vehicle sales in Mexico had their worst September since 2011 (when they amounted to 73,998 units), also hitting the lowest level for any month since July 2020, following the 76,930 units sold during that month, revealed INEGI. September represented the third contraction in sales of 2021.

“The results of September reflect the deterioration of the market, marking the third negative rate so far in 2021 and the first decrease after six consecutive months of progress. These results reflect the limitations faced by the lack of inventory linked to the shortage of semiconductors that impacts various industries globally,” said to El Economista Guillermo Rosales, Director General of AMDA.

Q5 Sportback: Mexico’s Latest Audi Export to the World

Days after commemorating five years of production at its San Jose Chiapa plant in Puebla,

German automaker Audi celebrated the launch of the new Q5 Sportback 2022, its medium-sized, sporty SUV, manufactured in Mexico for the world.

Scania’s First Electric Bus to Arrive in Mexico

Swedish heavy-vehicle manufacturer Scania and Mexican body manufacturer Beccar partnered to develop Volt and E-Urviabus, an electric bus to arrive in the Mexican market in 2022. Besides being Scania’s first fully-electric bus in Mexico, it will be the first e-bus to be body-built in the country.

The data used in this article was sourced from:  
Antonio Gozain Antonio Gozain Journalist and Industry Analyst