VIEW FROM THE TOP |
A CLEAR ROADMAP FOR REACHING MARKET POTENTIAL MIGUEL ELIZALDE Executive President of ANPACT
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Q: What are your projections regarding the contraction of
A: There are five key areas where the industry should focus.
the domestic market?
The first is what we call green incentives, which are related
A: The projection we made at the end of 2017 regarding
to new environmental regulations. Considering the added
domestic sales in 2018 expected a wholesale market of
investment necessary to purchase new, high-tech units, the
41,000 units and retail of 40,000 vehicles. We closed
government will have to provide incentives for companies
2017 with 40,756 units sold through wholesale and 41,765
to renew their fleets. These will also be crucial for fleets
through retail, which means sales would remain stable in
to purchase new vehicles in line with the new standards
wholesale and we could see a contraction of 4.3 percent
stipulated by NOM-044-SEMARNAT. Second, we must
in retail operations. However, we also performed a market
improve the financing conditions offered by development
analysis in collaboration with UNAM and its Economics
banks. So far, OEMs’ financing arms offer more attractive
School that showed the maximum potential demand of
loan options so development banks must step up their
the retail heavy-vehicle market would be 66,900 units if
game to support the industry, particularly at the owner-
we operated under optimal conditions.
operator level.
So far, we are 28 percent below the industry’s best-case
Professionalization is the third issue we must tackle, not
scenario. Between January and June 2018, we have seen a
referring in this case to operators but to micro, small and
fall in wholesale of 9 percent and a 1 percent decline in retail.
medium road-carrier companies. Most of these players
We come from an already lower result in 2017 of 6.8 percent
are family companies that have never received training on
in wholesale compared to 2016 and 5.2 percent in retail.
how to best administer their business. We have developed
We do anticipate, however, a pick-up in purchases ahead
several training plans over the years but we think these
of the two regulatory changes that are expected to come
should be compulsory and tied to the financing offering
to the industry. NOM-012-SCT related to road safety will be
and the availability of green incentives.
enforced on Jan. 1, 2019, while NOM-044-SEMARNAT will move the industry to Euro VI and EPA 13 from Euro IV and
Our fourth focus refers to the modernization of regulations.
EPA 04 in a process starting on Jan. 1, 2019 and finishing
All revised regulations should consider the latest technology,
two years later on Jan. 1, 2021.
particularly regarding safety. This area has gradually improved and as an example, ABS braking systems will be
Q: How have the NAFTA renegotiations impacted the
mandatory starting on Jan. 1, 2019 for all vehicles registered
heavy-vehicle sector?
at the federal level.
A: We do not make forecasts regarding production and exports but we have noticed gradual recovery in the market,
However, what is still lacking is vehicle inspection, which
particularly in export operations. Between January and May
is our fifth priority. Vehicle inspection should be the
2018, exports increased 26.0 percent while production
promoter of fleet renewal but we have to promote more
volumes rose 8.9 percent, although we must consider that we
transparency. Vehicles that do not comply with emission
are still operating under the trade conditions established by
standards and service criteria should be removed from
NAFTA. At the moment we have not seen any impact related
highways.
to the renegotiation of the treaty, but the US administration has already implemented tariffs of 25 percent and 10 percent on steel and aluminum, respectively.
The
National
Association
of
Bus,
Truck
and
Tractor
Manufacturers (ANPACT) has represented heavy vehicle and
Q: What should be the industry’s priorities to help the
engine manufacturers since 1992, promoting the development
domestic market realize its true potential?
of the commercial-vehicle industry in Mexico
