Tuesday, January 31, 2023

Automotive industry may increase production of vehicles and auto parts by 10% this year: Manuel Montoya

Automotive Industry May Increase Production Of Vehicles And Auto Parts By 10% This Year: Manuel Montoya

Although the recession in the United States this year presents challenges for the automotive industry in Nuevo León, it is expected that the sector will increase production and sales by about 10%, as they have in the past three years, because of the car shortage. 8 million cars stopped manufacturing, Manuel Montoya Ortega, director of the Nuevo León automotive cluster, told El Economista.

“I can’t say for sure, my guess is we’re going to grow 10%. I’m optimistic, because we have a car shortage, in three years we stopped building 8 million cars in America; has been done and the agencies do not have enough stock”.

“This is leading us to the fact that what is being produced is being sold despite the recession, because cars are needed. There will be other goods that are not sold, but automobiles are, I think. There will be an increase in production and auto parts,” also said the president of the National Network of Automotive Industry Groups.

The trend will continue to be that they prefer sedans to SUVs, “then there is the entry of electric vehicles that will not be very large and hybrid vehicles will continue to do well,” said Manuel Montoya.

In the 2023 Economic Panorama of the Nuevo León Ministry of Economy, it is noted that the automotive industry has been the most dynamic sector in exports, but despite its recovery in 2021 and 2022, it has not reached its best level since 2019 .

In the real output value index of main manufacturing sectors, the automotive industry rose to 210 points in 2019, while it was above 190 points by September 2022, after a sharp decline in 2020 and 2021 to a level below 170 points, due to the Covid-19 pandemic. Cause-19 pandemic.

Nevertheless, the state’s automotive exports are set to reach $12 billion in 2022 and there are good expectations of an increase in FDI inflows into the sector.

With regard to employment, he said that the industry creates about 100,000 jobs. He estimated that between 5,000 and 8,000 more jobs could be created with FDI in the unit.

Of the 101 investment projects confirmed between October 2021 and 2022, the State Economy Secretariat’s Investment Directorate indicated that there are 20 projects in the automotive sector, accounting for 19.8% of the total.

Nation World News Desk
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