Until March 2022, more than one million cars had been produced in Mexico and it is estimated to reach 3.4 million by the end of the year. The automotive industry is a pillar of the Mexican economy, since it represents 20% of the Gross Domestic Product of manufacturing, said Manuel Montoya, director of the Automotive Cluster of Nuevo León (CLAUT).

During a webinar organized by Mexico Industry and JLG, the director of CLAUT reported that, in 2021, the export of auto parts to the United States was the largest, close to 60 billion dollars; followed by vehicles, with around 27 billion.

According to the consulting firm ISH, it is estimated that around 15 million cars will be produced in North America in 2022, and 17 million in 2023. In this year, the United States will contribute 10 million, Mexico with 3.4 and Canada with 1.4; in 2023, the United States with 11.5 million, Mexico with 3.4 and Canada with 1.5. However, according to IHS, by 2025 electric vehicles are expected to account for 6-15% of the market.

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The director of CLAUT pointed out that among the main reasons that influence the speed of adoption of electric vehicles in the world are legislation, the cost of the battery and infrastructure.

The legislation of the different regions of the world affects the regulation of emissions into the environment, while the cost of the battery slows down the entry into the market of electric cars and finally, the infrastructure in countries such as Mexico and others in Latin America, Africa , Southeast Asia and Eastern Europe, is still not enough to support this change.

Traditional assemblers have announced the production of various models of electric vehicles and develop technologies that will make them more accessible, and for this the suppliers of the traditional automotive chain must adapt to changes in requirements.

At a general level, an electric vehicle has fewer parts than a traditional one; parts such as the engine, transmission, clutch, exhaust system, among many other components, will no longer be required, giving priority to plastic and aluminum components and reducing the use of cast steel, which is reflected in the value chain”, the manager said.

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Manuel Montoya highlighted that there are different opportunities for national integration; above all, for Tier 2 suppliers, since there are 500 plants in this category in Mexico, including: plastic injection, machining, stamping, screws, forging, casting, among others.

Now, with the rules of origin, Tier 1s are obliged to seek suppliers in Canada, the United States and Mexico; so there is a great opportunity to attract business if you are at a Tier 2 level, said the director of CLAUT.

He concluded by indicating that in addition to the TMEC, nearshoring increases the possibilities of growth in the business of auto parts companies.

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