Puebla to Invest in Automotive Industry

The Government of Puebla will announce investment projects to reactivate the state’s economy, especially in the automotive industry, SMEs and e-commerce businesses. These strategies are part of its goal to fight against unemployment caused by COVID-19, said Governor of Puebla Miguel Barbosa Huerta this Thursday.

According to INEGI, manufacturing industries represent 22.4 percent of the state GDP and continue to be the most important industry sector in Puebla, but it is not the only one. Barbosa explained in press conference that his government aims to support small and medium businessmen through incentives yet to be announced.

Olivia Salomón Vivaldo, Minister of Economy of Puebla, will soon announce the “Economic Reactivation Plan” that the government has already kicked-off, according to Barbosa. The Governor also discussed several actions taken by his administration to keep attracting both local and foreign investments during 2021. Barbosa, however, did not provide details on the Economic Reactivation Plan nor on the discussed investments. He urged Puebla’s business owners and entrepreneurs to “keep trusting” in the decisions his government has made.

Last week, Barbosa held a meeting with Suh Jeong-in, South Korea’s Ambassador to Mexico, in which they discussed Puebla’s interest to do a commercial agreement and bring the Asian country’s investment to the state, reported El Economista. South Korean automotive companies have become important to Mexico during the last decade, with the arrival of Hyundai and Kia Motors. While the first has the country “always in their list” for building a new plant, according to Forbes, the second one already has an important plant in Nuevo Leon, which increased Kia’s productive capacity by 10 percent globally.

With less than 10 years in Mexico, Hyundai and Kia are in the Top 10 in market share and, with different views and objectives, both aim to continue growing in sales. “Our goal is to operate according to a long-term vision,” said Claudia Márquez, CEO of Hyundai Motor de Mexico, to MBN last year.

While the exact content treated by Barbosa and South Korean ambassador is unofficial, a partnership between Puebla and Hyundai or Kia may be an option in the middle term, considering the state’s automotive industry tradition.