The automotive industry in Mexico, the most important in Latin America, faces great challenges, among which the economic recovery and innovation stand out, based on the analysis of trends and new customer needs, as stated by Marco Galindo, partner of audit at KPMG México for México Industry.

Automotive production in Mexico is mainly destined for the United States market, with a high dependence on it, for which Mexico is favored by the decisions of the United States government that are generating the economic reactivation of the neighboring country.

After an approximate 20% drop in the national production of light vehicles during 2020, derived from the confinement, the industry is in recovery.

This reactivation is accompanied by a gradual increase in the national and international consumption of new vehicles.

The automotive industry plays a leading role in the economic reactivation, contributing significantly to the country's gross domestic product (GDP).

In addition, it generates direct and indirect jobs, and its supply chain is made up of a large number of economic entities that contribute to the rebound of the national and regional economy.

The geographic location of Mexico constitutes an advantage for the industry.

Although the Bajío is an important engine, the corridor of Coahuila and Monterrey and, even, Sonora are added; all these relevant players in the national industry, with access, for the most part, to routes that facilitate the commercialization of merchandise through seaports with the United States and Canada.

Additionally, our country maintains a privileged place as a producer in the global arena, which generates good expectations in the short and medium term.

On the demand side, we know that users' needs and vision are changing rapidly.

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It is likely that in the coming years a relevant transformation of the industry will be experienced, although during the pandemic, organizations have focused more on operation and economic recovery than on technological development.

According to the results of the Global Automotive Executive Survey 2020, from KPMG International, electric mobility, connectivity and digitization together with hybrid mobility will be predominant trends for 2030.

The focus on sustainability and the environment are relevant factors globally, since it is estimated that there will be regulators in the world that will set the course for the automotive industry in the short and medium term in terms of technological development.

Already several member countries of the Organization for Economic Cooperation and Development (OECD) have announced important regulations in the manufacture of the powertrain.

In the aforementioned study, it is mentioned that, by 2030, the world market for vehicles will not have mainly those of combustion, but will be complemented with hybrid and electric vehicles, mainly.

Industry trends pose major challenges, such as cost-dependent hybrid, electric and autonomous vehicle pricing and battery manufacturing; components and raw materials such as lithium, sensors, electronic devices and, in some cases, CO2.

In time, users will weigh cost, need to recharge, and battery range, for example, as primary factors and barriers in the purchase decision.

The leading role will be marked by those economic entities, particularly original equipment producers (OEMs), which are committed to innovation and strategically invest in it, developing sustainable products that add value to the automotive production chain.

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Among the actions necessary to be part of this transformation, it highlights the analysis and detailed study of the characteristics of new trends, components and their main raw materials, as well as the costs and services necessary for their use and disposal.

In conclusion, various factors will set the tone in the technological agenda of the automotive industry, such as the limitation in the use of combustion vehicles, incentives in favor of the environment or the provisions regarding safety and homologation of regulations for vehicles. autonomous.

The supply of raw materials will detonate the powertrain of the industry in each country; In the case of Mexico, it covers the availability of fuel and the charging infrastructure for electric cars.

In this context, it is possible to foresee that, in the coming years, technology companies will be competing and collaborating with OEMs on innovation.

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