Friday, June 2, 2023

The Mexican industry needs a good future because of nearshoring

In an interview on Radio Imagen in the first edition of the Informative Image with Pascal Beltrán del Río, Héctor Romo, Mexico’s Partner Leader of the Bajío Region at KPMG, the Mexican automotive industry has a bright future with the relocation of companies, however, some of the challenges they bring from changes in propulsion systems, new technologies and market share.

As for the above, it shows that according to the KPMG Global Survey of car executives, executives in the car sector have three main challenges, one of which is inflation and a large amount of interest, of which 76 percent should mention the price impact. financing and profits in the near future of the industry.

The second concerns the vulnerability of supply chains, since more than half of those surveyed are either very worried or very worried about the situation of semiconductors, lithium, cable, steel and light materials for cars, especially electric ones.

Meanwhile, a third challenge is envisaged in cyber security and data privacy, from the incorporation of more and more Data Analytics technology in vehicle units.

On the other hand, Romo points out some opportunities that are being projected for the growing industry. The first is digital consumers, only 62 percent of executives surveyed trust that consumers are willing to pay for monthly subscriptions with software for running vehicles, for data analysis for unit maintenance, or even for advanced handling upgrades.

In addition, he indicated that self-insurance also gives the opportunity for producers to have results, not to compete directly with the insurgents, but to have a model of partnerships.

And the third opportunity is approaching, when they see that mode of dependence to mitigate the risk for automakers in one or two countries, as well as to reduce costs in the medium term.

Regarding this task, the main partner of the Regional Bajío in KPMG Mexico said that now is the best time for our country’s approach, since it will allow the process of attracting not only in meetings or components, but also us in the front stage of opportunity for the development of components with greater added value, such as software, manufacturing process understanding, and data processing services under the global trend of the best Costa Rican countries.

In addition to this, he emphasized that this trend should not only be accepted in investment, but that Mexico must overcome great challenges such as the availability and quality of talent, infrastructure, especially industrial growth, and the supply of energy, specifically the issue of electricity; as well as further developments in the country’s ESG agenda.

Among the conclusions of the firm’s study, Hector Romo mentioned that the expectations for the growth of zero-emission vehicles were moderate, in that year, car executives estimate that these cars will be between 10 and 40 percent of the goods sold for 2030. He highlighted that the expectations of the next year are much higher, because those surveyed thought that the market itself it will be between 20 and 70 percent of sales by 2030, however, the numbers are modulating due to the current situation, mainly the result of limited infrastructure with batteries in the country and the volatile environment of growth.

Drawing from the above, he also indicated more confidence that the electric vehicle industry will result in an equal or accessible cost of acquisition compared to internal combustion cars from 2030 and 2035.

Finally, he said, new players are expected to invest in the industry, such as the automaker that just announced its investment in Monterrey, as well as the manufacturer of cell phones with the Manzanita logo.

For more information, Héctor Romo said that a message can be sent through:

Nation World News Desk
Nation World News Desk
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