AMIA: light car production in Mexico will have its fourth year of declines

By the end of 2021, the automotive industry reported that the production of light vehicles in Mexico will report a drop -for the fourth consecutive year-, estimated at 2.3% compared to 2020.

The assembly amount would be around 2.9 million units, affected by the semiconductor shortage crisis and increases in logistics costs; the sector estimated that it would manage to rebound exports by just 0.5% compared to last year.

The Mexican Association of the Automotive Industry (AMIA) argued that 2020 marked “the worst crisis” that has ever affected the automotive industry and 2021 continued to be a challenging year, so it will be until 2024 when the industry is able to recover to pre-pandemic levels.

However, the automotive companies agglutinated in the private body (General Motors, Ford, Nissan, Toyota, THAT, BMW, among others) warned that the electrical reform promoted by the Executive undermines the investments of the sector in Mexico.

“The reform initiative could affect the country’s status, since, due to these international commitments and global goals, future investment is being threatened if commitment to clean energy and emission reduction is not demonstrated,” warned José Zozaya, president by AMIA.

Mexico has been characterized by being a competitive and attractive country for direct foreign investment, being one of the engines for the growth and development of the country through the generation of foreign exchange for the Mexican economy, he said.

When conducting an analysis on how the industry closes in 2021, the leader of the Association affirmed that Mexico has gone through very difficult times since the declaration of the first case of Covid-19 in the country; And like the rest of the world, the auto industry had to adjust and work to get ahead despite the difficulties and losses that arose.

“2021 was the beginning of a year with many difficulties and the AMIA presented favorable forecasts for a safe recovery by the end of the year; However, the delays in vaccination, as well as the shortage of semiconductors affected this scenario. A few days before the end of this year, the result could be that production and export volumes are similar to those of 2020, “he said.