Although the automotive sector has not been prominently featured in President Claudia Sheinbaum Pardo’s proposals, the Mexican Association of the Automotive Industry (AMIA) is urging the head of the Federal Executive Branch to prioritize the industry in light of the upcoming review of the Mexico-United States-Canada Agreement (USMCA or T-MEC). The AMIA recognizes the automotive sector’s pivotal role in Mexico’s economy. It emphasizes the need for targeted government policies to sustain and expand the industry’s growth, particularly in electric vehicles and electromobility.
Odracir Barquera, the director of the Mexican Association of the Automotive Industry, outlined ten comprehensive proposals to shape a robust and forward-looking automotive policy. These recommendations were unveiled after the first-ever Drive Forward Summit in Mexico, an event attended by representatives from major industry players such as Nissan, General Motors, Toyota, and BMW. These proposals address a wide range of critical issues, from sustainability and infrastructure to workforce development and regulatory frameworks, all with the objective of positioning Mexico as a global leader in the automotive industry.
Ten Proposals made by AMIA
1. A Comprehensive Policy for Electromobility
The Mexican Association of the Automotive Industry advocates for creating a public policy dedicated to electromobility to boost manufacturing and supply chains that support electric vehicles (EVs). This policy would focus on achieving carbon neutrality while developing the necessary infrastructure to encourage the adoption of green technologies. Mexico could establish itself as a regional hub for sustainable automotive solutions by fostering innovation in EV production.
- Enhancing Conditions for Existing Operations
The government must create conditions conducive to business growth to attract higher levels of investment and expand current operations. This includes streamlining administrative processes, providing fiscal incentives, and ensuring regulatory stability to encourage reinvestment by companies already operating in Mexico.
- Improving Mexico’s Energy Matrix
A key priority is enhancing the reliability and sustainability of Mexico’s energy supply. Transitioning to clean energy sources would support the environmental goals of automotive companies and align Mexico with global trends toward green energy. This includes investments in renewable energy projects and reforms to ensure energy availability meets industrial demand.
- Upgrading Physical and Digital Infrastructure
Modernizing infrastructure is critical to improving the efficiency of customs operations. The AMIA proposes expanding the capacity of ports, border crossings, and airports to facilitate smoother trade and logistics. Additionally, digital transformation in customs processes could reduce delays and enhance operational transparency.
- Leveraging International Trade Agreements
Mexico’s strategic location and participation in agreements such as the USMCA provide unique opportunities to strengthen its position in the global automotive market. The Mexica Association of the Automotive Industry suggests using these agreements to deepen integration within North America while pursuing new trade partnerships with the European Union, the United Kingdom, Brazil, and Argentina to diversify export markets and reduce dependency on any single region.
- Aligning Labor Supply with Industry Needs
Integrating the workforce with the evolving requirements of the automotive industry is essential. The AMIA calls for the development of academic programs and training initiatives tailored to the sector’s technological advancements and operational demands. This would ensure a steady pipeline of skilled workers ready to meet the challenges of an increasingly automated and electrified industry.
- Modernizing the Vehicle Registration System
A modern, functional, reliable vehicle registration system ensures transparency and regulatory compliance. The Mexican Association of the Automotive Industry proposes the creation of a new General Law for Vehicle Registration, which would facilitate better tracking of vehicles and support law enforcement efforts.
- Ensuring Market Transparency
The AMIA recommends implementing a transparency framework to foster fair competition within the domestic automotive market. This framework would establish clear rules for market participants, ensuring that consumers and businesses benefit from competitive practices.
- Updating Regulatory Frameworks
Technological advancements in the automotive sector necessitate a regulatory framework that keeps up with innovation. The AMIA advocates for updated norms and standards that reflect global best practices, enabling Mexico to stay competitive in the international market.
- Guaranteeing Operational Security
Security remains a pressing concern for automotive companies operating in Mexico. The Mexican Association of the Automotive Industry stresses the importance of measures to ensure the safety of operations across various sectors, including transportation, supply chains, and distribution networks. Strengthening law enforcement and implementing preventative measures would mitigate risks and create a more stable environment for investment.
The Road Ahead for the Automotive Industry
“We believe this is the moment to ensure that this momentum is harnessed from a comprehensive vision of what this transition means for Mexico,” stated Odracir Barquera. He underscored the importance of the next six years under the new administration in determining Mexico’s trajectory toward a shared future of sustainable growth and innovation in the automotive sector.
The proposals outlined by the AMIA reflect the industry’s aspirations to not only adapt to global trends but also to lead them. By prioritizing electromobility and sustainability, addressing infrastructure gaps, and aligning educational and regulatory frameworks with industry needs, Mexico has the potential to cement its status as a global automotive powerhouse. With strategic governmental support, these initiatives could pave the way for significant economic growth, job creation, and technological advancement.
Strategic Implications for Mexico’s Economy
The automotive industry is a cornerstone of Mexico’s economy, contributing significantly to GDP, exports, and employment. As global demand shifts toward electric and sustainable vehicles, countries that position themselves at the forefront of this transformation stand to reap substantial benefits. Mexico’s proximity to key markets, established manufacturing base, and skilled workforce provide a strong foundation for achieving these goals. However, the successful implementation of the AMIA’s proposals will require a collaborative effort between the government, industry stakeholders, and academia.
In conclusion, the AMIA’s proposals to President Claudia Sheinbaum represent a roadmap for the future of Mexico’s automotive industry. By addressing critical issues such as electromobility, infrastructure, energy, and workforce development, these initiatives have the potential to drive the industry’s growth while positioning Mexico as a leader in the global shift toward sustainable transportation. The next administration’s response to these recommendations will be pivotal in shaping the future of the country’s automotive sector and its role in the international market.