Sector’s Outlook Presented at Mexico Automotive Summit 2021By Cas Biekmann | Thu, 03/25/2021 - 14:32
This week, Mexico Automotive Summit 2021 took place online for the first time in its history. A wide range of topics were covered, including manufacturing trends, shifts in personal mobility and decarbonization. Read some of the highlights of the summit here!
The automotive industry is going through deep changes as new technologies reshape diverse aspects of the sector, from a vehicle’s carbon footprint to mobility itself. Moreover, the COVID-19 pandemic has cut vehicle production and sales to a fraction of what they were before. Under these circumstances, carmakers in North America must take a joint approach to handle the challenges brought by changing customer preferences.
The pandemic accelerated the digitalization of the vehicle sales process. Little by little, dealerships were forced to adapt and reinvent themselves, becoming content creators, digital marketers and proactive salespeople. Industry leaders took note and helped dealerships to strengthen their online sales capabilities by engaging in solid partnerships with large e-commerce players. Mexico Automotive Summit 2021 gathered leaders in the digitalization of sales process to share their experience and challenges of today and tomorrow to reinvent the industry.
OEMs have made electric vehicles a priority. Investments made 10 years ago are becoming a reality across Asian, European and North American brands. For these vehicles to further penetrate the Mexican market, not only charging infrastructure is very much needed but also the right government incentives to promote sustainable mobility, agreed panelists.
Experienced panelists in the automotive manufacturing environment debated the latest trends in smart manufacturing in a panel moderated by Tarsicio Carreón, President of Chihuahua Automotive Cluster, during Mexico Automotive Summit. Panelists agreed that technology had been a major contributor to keeping operations safe, sustainable and cost-effective during the pandemic, but also outlined areas of opportunity and future trends to watch out for.
Over the past three years, most major automakers have announced detailed plans to reduce greenhouse emissions, not only in their own production plants and vehicles but across the entire value chain. For this to be possible, not only do companies and the private sector need to invest in new technologies. They also need incentives and public policies focused on supporting this transformation, agreed panelists at Mexico Automotive Summit.
Lower costs, better management and higher sustainability in heavy vehicles are already within grasp, said panelists during Mexico Automotive Summit’s first panel. However, infrastructure needs to catch up. Further government incentives and enhanced financing options are also needed to spur growth and help Mexico renew its vehicle fleet.
The COVID-19 pandemic disrupted mobility to an unprecedented degree, fully changing how people and businesses move and operate. Trends that were gradually penetrating the sector, such as electrification and data analytics, accelerated and are now even commonplace. In the panel “The Future of Shared Mobility vs Car Ownership,” speakers agreed that the sector is almost unrecognizable when compared to its pre-pandemic condition. Mobility companies have had to get creative regarding their product portfolio, while providing safer services for their users.
Companies at the different levels of the supply chain present different perspectives on the advances in smart manufacturing, relocating operations, the impact of electric vehicles, stricter environmental standards, as well as the resilience needed to emerge after the pandemic during Mexico Automotive Summit 2021. During the opening presentation, President of Toyota Motor Mexico Luis Lozano and President of INA Oscar Albín addressed the progress the country has made toward the industry’s consolidation and what still needs to be done to get there faster.