Querétaro’s automotive industry closes the year with an adverse environment

Querétaro, Qro. Faced with the adversities that accompany the Automotive industry, local companies in the sector end the year and start 2022 in a complex but challenging environment, leading this industry to increase its efficiency levels and adapt to the lags that arise in the supply chain.

The Automotive industry closes 2021 without recovering pre-pandemic production levels, with a decrease in vehicle production in the North America region that impacts the demand for auto parts for the entity, said the president of the Automotive Cluster of Queretaro, Renato Villaseñor Mendoza.

“Specifically regarding auto parts, we were not able to recover the volumes we had in 2019, but we are on the right track, we are working quite well,” he explained.

He explained that it is estimated that due to the shortage of semiconductors in the region, 2.5 million units will cease to be produced, it is almost 15% less than what was programmed; However, the drop in manufacture of auto parts It is 6%, which allows having inventory for future demand.

“Although 15% of the vehicles were not produced, the reality is that if we compare what was produced in 2019 versus 2021, 15% of cars were stopped being produced, but we only have a 6% drop in the manufacture of auto parts, it means that we are able to produce new auto parts; This will help so that once the vehicles produced by semiconductors are replaced, we are strengthened, that is, producing more parts in the state of Querétaro ”, he commented.

Up to 85% of auto parts manufactured in Queretaro They are exported to the United States, the main market for Queretaro pieces.

Although throughout 2021 there were various global setbacks for the industry, the state’s automotive companies concluded a good year, as the disruption in supply chains, the logistics crisis, the semiconductor shortage, led state companies to rethink their production processes and increase their efficiency to deal with this context, he explained.

“I think that in the end it turned out to be a good year. With many learnings. Yes with many situations that we were not used to having, such as the semiconductor deficit; the crisis in the supply chain: first for steel, which is still very high (the price); then transportation costs, logistical issues, freight costs to transport from Asia to here, which have increased six to seven times ”, he explained.

Supplies

The increased cost of inputs, the deficit of supplies, were effects that ended up strengthening the operations of the companies, said Villaseñor Mendoza.

“But that has helped us to strengthen our operations. I also believe that all the companies that we are in Queretaro It has helped us to rethink ourselves, to be more efficient ”, he explained.

Similarly, these crises forced the Automotive industry to relocate its supply within the region and reduce dependency with other regions of the world.

For the national president of the Mexican Automotive Distribution Association (AMDA), Guillermo Rosales Zárate, 2022 will be difficult conditions in the supply of units, due to the semiconductor crisis; the projection is that it will be in the year 2023 when vehicle production is normalized globally.

The end of 2021, according to the AMDA, could be 1 million 7,000 units sold in Mexico, a figure that would be approximately 37% below 2016, the record year in which 1 million 607,000 units were sold.

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Reference-www.eleconomista.com.mx

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