How technology has changed the automotive industry – Within the framework of the Press Conference of INA (National Auto Parts Industry), AMDA (Mexican Association of Automotive Distributors), and AMIA (Mexican Association of the Automotive Industry), which explains the situation in which the automotive industry finds itself, vehicle electrification and the auto parts industry in Mexico and globally, evidences the achievements that have made in 2022 compared to previous years and the possible concerns of the industry for the future.
Automotive industry
Initially, it was exposed that as of September of this year, the sale of vehicles increased. In September, an increase of 11.6% was reported compared to the same month last year by achieving the commercialization of 85,842 units and 8,912 additional units compared to the same month of 2021.
The exception was in the subcompact car segment, which fell 20.6% compared to September 2021. In the rest of the details, there were positive results. In the case of compact cars, the increase was 24.5%, and luxury cars increased by 13.6%.
According to experts, it estimated that by the second half of 2023, the automotive industry will have normalized its production.
auto parts industry
Now, regarding the auto parts industry, INA estimates that 2022 will close with 870,000 direct jobs, representing an increase of 4% compared to 2021.
The current technological revolution that the auto parts sector is going through requires the workforce to specialize in systems and software, functional safety, automotive cybersecurity, authorizing, and model b, among others.
INA launches summit for the Automotive Industry
The main export destinations in the Mexican auto parts industry are the United States, Canada, and Brazil; 9 out of 10 exports from Mexico in the auto parts sector go to its neighboring country to the north. Similarly, 5 out of 10 imports made in Mexico come from the United States. China and Japan are also important suppliers to the industry.
From January to July 2022, the value of production in the North American region was 229.330 million dollars, which accounts for the recovery of this region in the auto parts sector.
The export arm of the Mexican auto parts sector has allowed Mexico to consolidate itself as the leading supplier of the auto parts sector to the United States, covering nearly 40% of the US market. Mexico always at the forefront of the technology, materials, processes, and supply that installed in the country.
The auto parts industry today will be robust for the next 5 years. Precisely for 2023, it is estimated that it will reach sales of 109,000 million dollars; this has to do with trust, logistics, the supply currently installed and the new investments awaiting in the auto parts industry.
vehicular electrification
Regarding the transition towards electromobility, it is necessary to change towards new technologies while maintaining the competitive position in the market, not only in the United States but globally.
For the manufacture of parts and components for electric vehicles, the use and manufacture of electrified vehicles must promoted; this what the transition to electromobility consists of, added to the commitments acquired by both Mexico and other countries in the world, in terms of the reduction of greenhouse gas emissions and pollutants.
However, one cannot lose sight of the electrification crisis that has recently occurred not only in the United States, nonetheless also in other countries in America, where the most significant sales of electric cars expected.
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We understand and celebrate that the authorities analyze and present proposals to improve regulations and guidelines in favor of the citizenry; however, it is essential to involve all the actors that play a role in the ecosystem to reach holistic solutions that benefit Mexico without risking its economic growth. We believe that our proposals and concerns have received but not always addressed by the authorities, which impacts the industry.
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We understand that the intentions of the Federal Executive are commendable; however, the legalization of the illegal is putting the rule of law in our country at risk. On the other hand, this regularization affects all the people who today own vehicles legally acquired in the country since, due to the upsurge in the number of cars in circulation, the sale prices of used vehicles circulating the country will pressured downwards by the excess supply, with the effect above.
As an industry, our commitment has always been to promote and monitor the safety and integrity of everyone in any public space, whether they are vehicle occupants, motorcyclists, cyclists, or pedestrians. On the contrary, it will be challenging to ensure that these used light vehicles that enter the country illegally guarantee compliance with the official Mexican standards of quality and safety devices, opening the possibility of an increase in accidents and tragedies.
