Mexico will start 2023 as the leading producer in Latin America and as the seventh largest producer of new light cars worldwide. It is known that automobiles and auto parts are the main exporting and importing sector of the country, so special attention must be paid, and this brings with it several challenges. The automotive industry must focus its attention on certain trends, such as nearshoring, to reposition Mexico, not only as a strategic player due to its location for the export market, but also to continue specializing as a competitive player in the value chains.

Production Challenges

Regarding vehicle production, specifically light vehicles, the Mexican Association of the Automotive Industry estimates that there will be a 6.6% growth in production; however, in January, production was 3.37% higher than estimated. The automotive industry must prepare for the growth in demand in the sector.

Technology challenges

Automakers and suppliers must adapt to new propulsion technologies. Mainly electric and hybrid vehicles, as buyers seek vehicles that use less fuel and generate fewer emissions. The trend of autonomous vehicles is coming in the not-so-distant future; it is expected that by 2030 autonomous cars will be the norm.

Among the technological challenges, we also find the issue of connectivity. By 2028, it is estimated that 94% of cars will be connected to a 5G service, which makes it necessary to accelerate the installation of this infrastructure, invest in connecting disconnected locations and coordinate with local governments to accelerate the installation and deployment of these networks.

Innovation centers and hubs are required to develop technology and capabilities. To this end, it is essential to strengthen the educational offer, develop specialized, industry-oriented careers, with international certification and in alliance with U.S. universities. This also implies generating labor mobility in the sector with that country.

What vehicles will arrive in Mexico in 2023?

Approximately 70 vehicles will be launched. These are some of the vehicles that will arrive in Mexico this year:

  • Audi Q8 e-tron
  • Alfa Romeo Tonale
  • Audi A4
  • Audi Q4 e-tron
  • BMW i7
  • Cadillac Lyriq
  • Fiat Fastback
  • Ford Evos
  • KIA Seltos

The country is preparing to continue attracting FDI in this industry, they are aware of the challenges and will face them in the best way to increase the potential of the sector.