Recovering Mexico Automotive Industry

Electromobility and nearshoring are supporting the Mexican industry to recover its pre-pandemic strength and relevance in the Mexican economy. Consequently, INA has forecasted automotive investments to grow in the short term. 

Meanwhile, automakers continue to bet on Mexico’s capabilities with new models like Versa 2023 being manufactured locally. 

This and more in the Week in Automotive!

Mexico’s Automotive Industry in 2022

Supply chain disruptions, chip shortages and trade disputes in the USMCA region continue to affect the automotive industry in early 2022. However, throughout the year, the industry has shown a slow but steady recovery. Leveraging the opportunities that electromobility and USMCA have brought has been essential to strengthening the Mexican sector and increasing its competitiveness. Learn more about the 2022 automotive highlights here. 

Mexico’s Automotive Investments to Grow: INA

INA expects the increase in the Regional Content Value (RVC) required by USMCA to 75 percent will attract more automotive investment to Mexico. This rate will be enforced in July 2023, leading automotive manufacturers to invest in the production of auto parts in North America. Due to the opportunities created by nearshoring, INA forecasted the auto parts market to reach an all-time high of US$109 billion in 2023 and US$110 billion in 2024. Read the whole story here. 

Nissan Versa 2023 to Be Assembled in Mexico

Nissan Mexicana announced the production of the new Versa 2023, which will take place at the company’s assembly plant in Aguascalientes. The new Versa will include Nissan Intelligent Mobility technology, which will make the model one of the most complete, safe and reliable vehicles in its segment, thanks to technologies like Forward Collision Alert, Intelligent Emergency Braking, an Intelligent Peripheral Vision Monitor and Blind Spot Alert. 

“With a legacy that for more than a decade has combined the best of Japanese engineering and Mexican manufacturing, Nissan Versa has positioned itself as the best choice for those looking for high fuel efficiency, ample interior space, comfort and technology, all at a smart price. This is something that only Nissan can offer,” said Rodrigo Centeno, Senior Marketing Director, Nissan Mexicana. Read the whole story here.

Mexico to Benefit from Global Supply Chain Reorganization

Global supply chain shocks increased Mexico’s nearshoring potential, opening new opportunities for the industry, says ZEISS Mexico’s Arturo Zavala. “Several companies are looking to establish themselves in the country and it is likely that ZEISS worked with them somewhere else in the world or that we are currently involved with them. This allows information to flow, helping us to identify opportunities and to build multiregional teams, which come together to offer comprehensive, joint solutions to clients,” he explains. Read the complete interview on MBN. 

The Future Requires Certainty

Cross-sector dialogue and collaboration with various levels of government are essential for the future of the auto industry. “Maintaining and strengthening an open dialogue between the government, representatives of civil society and the private sector will make it possible to generate beneficial lines of action for the economy. However, it is essential to put them into practice to create an environment with true legal certainty that gives security to citizens and our investors, in order to take Mexico into the future, creating more and better jobs for Mexicans,” writes José Zozaya, Executive President, AMIA. Read his whole contribution here.