Introduction
As the automotive industry faces arguably its biggest transformation in history, players across the supply chain continue to adapt to ongoing changes and disruptions, including the war in Ukraine and its global impact, rising inflation and growing energy and transportation costs. While production has yet to fully recover following the COVID-19 pandemic and subsequent component shortages and logistics constraints, Mexican suppliers continue to innovate and embrace disruption to renew product portfolios and meet OEMs’ changing demands, as the latter continue their transformation from automakers to mobility providers. Despite the ongoing challenges, the automotive sector continues its push toward sustainability, which is driving further innovations within manufacturing processes, material technology, transport and electrified vehicles. This is in addition to the growing adoption of alternative fuels for heavy vehicles in Mexico. By the end of 2021, Mexico became the fourth-largest exporter of auto parts in the world. The country is expected to keep growing in this regard, thanks to USMCA and the benefits it has brought to the national automotive industry. Mexico will have exported about US$80 billion in auto parts by the end of 2022 to the US and Canada, far beyond the US$34.8 billion in auto parts imports. Meanwhile, nearshoring continues to gain traction, representing a significant area of opportunity to continue developing the local supply chain. The latest edition of Mexico Automotive Review gathers the insights and projections of key decision-makers in the sector, providing an insiders’ perspective regarding ongoing industry transformations alongside in-depth analyses. From logistics and technology partners to OEMs, Tier 1s and Tier 2s, those shaping the automotive sector share their expectations for a key component of the Mexican economic engine.
