Tax incentives, Heavy Vehicle Sales, Mitsubishi on the SpotlightBy Alejandro Enríquez | Thu, 07/22/2021 - 18:25
The week had mixed transmissions for the automotive sector. Mexico’s Tax authority stated that it plans to eliminate part of the incentives that have made the sector more attractive for FDI. Meanwhile, Jorge Vallejo, President and CEO of Mitsubishi, shared the brand’s successful growth strategies for the domestic market. The 1H2021 results for the heavy vehicle market are out.
Do not miss the overview on the potential of the commercial vehicle sector by our expert contributor Guillermo Prieto, President of AMDA. In other news, Nissan earned the "Made in Mexico" seal, 3D Systems introduced a new material for additive manufacturing of auto parts and Mexico’s new mobility law is ready. This week’s cherry on top is our analysis on 5G's potential for manufacturing applications.
Ready? This is the week in automotive!
Analysis: 5G: US$740 Billion Potential in Manufacturing Applications
Fifth-generation wireless technology, commonly known as 5G, has the potential to reshape manufacturing operations. Greater levels of automation, data warehouses, augmented reality, cloud computing and state-of-the-art Industrial Internet of Things (IIoT) will drive the deployment of 5G networks at manufacturing facilities.
Continue reading our analysis piece.
Industry Leaders Reject SAT’s Proposal to Cut VAT Incentives
The Director of the Mexico’s Service Tax Administration (SAT), Raquel Buenrostro, said on an interview that she plans to keep pushing for the elimination of added value tax (VAT) incentives given to automakers. In response, industry representatives have highlighted that this move could hinder Mexico's competitiveness in the automotive sector.
Mitsubishi Consolidating Growth Strategies
"We opened two new dealerships during the pandemic. We are working on a consolidation strategy to improve our dealerships by focusing on their performance and are developing a really profitable network. This is a priority for us. New dealership groups are trusting Mitsubishi Motors and that means we are on the right path," says Jorge Vallejo, CEO and President of Mitsubishi Motors de México. Continue reading here.
Heavy Vehicle Market 1H2021 Results
Guillermo Rosales, Director General of AMDA, and Miguel Elizalde, President of ANPACT, presented a report on heavy vehicle sales during 1H2021. “A substantial increase in year-on-year retail sales is explained due to the low basis June 2020 represented for the sector. Sales in June 2020 were severely affected by the pandemic; that month marked the beginning of the new normal,” said Rosales.
The Untapped Potential of the Commercial Vehicle Market
"Commercial vehicle brands have been present nationwide with 418 sites (including points of sale, parts and service centers) by the end of 2020, including dealerships, workshops, and spare parts centers. Most of the sites are established in the central and northern regions," writes Guillermo Prieto, President of AMDA. Continue reading about the potential of this segment of the industry.
Mexico’s New General Mobility and Road Safety Law Almost Ready
Stakeholders and the Mexican senate are developing a new general law for mobility and road safety. The new law formally began with the publication of Constitutional reform in December 2020, following the principles that the constitution grants every person “a right to mobility in conditions of safety, accessibility, efficiency, sustainability, quality, inclusion and equality."
Nissan Earns "Made in Mexico" Seal
Mexico’s Ministry of Economy, through the Mexican Institute for Normalization and Certification (IMNC), granted Nissan Mexicana the "Made in Mexico" seal for the models NP300, Nissan Frontier and Nissan V-drive, all manufactured in its CIVAC plant in Morelos. This official seal identifies products made in the country, allowing national and international consumers to recognize their origin and 'world-class quality,' stated Nissan.
3D Systems Introduces Material for Long-Term Use Parts
3D Systems introduced production-grade resin Accura AMX Rigid Black, which will facilitate the manufacture of large, structural, load-bearing parts for a variety of markets including automotive. “As part of our strategy to invest in and continue to add innovative products to our SLA material portfolio, the introduction of Accura AMX Rigid Black is poised to address a variety of new production applications with additive manufacturing," said Edwin Hortelano, Senior Vice President of Materials Engineering and Development at 3D Systems.