Driving Change: AMIA’s Proposals for the Future of Mexico’s Automotive Industry

By Felipe Ledezma 


October 23, 2024

AMIA presented ten proposals to revitalize the automotive sector under Mexico's new government. These proposals focus on transitioning to electromobility and strengthening Mexico's global automotive leadership while leveraging the T-MEC to promote sustainability and competitiveness in the industry.

The Mexican Association of the Automotive Industry (AMIA) has unveiled a comprehensive set of ten proposals aimed at revitalizing the automotive sector under the government of Claudia Sheinbaum. With a focus on transitioning to electromobility and enhancing Mexico's position as a global automotive leader, these proposals seek to harness the potential of the Mexico-United States-Canada Trade Agreement (USMCA) for a more sustainable and competitive future.

1. Embracing Electromobility

At the forefront of AMIA's proposals is the call for a robust public policy promoting electromobility. This initiative aims to facilitate manufacturing and supply chains that align with the goals of carbon neutrality. By investing in the necessary infrastructure, Mexico can stimulate the adoption of electric vehicle technologies, setting the stage for a greener automotive landscape.

2. Attracting Investment

AMIA emphasizes the importance of creating conditions that enhance the operations of established automotive companies while attracting new investments. By fostering a business-friendly environment, Mexico can expand its automotive operations and increase competitiveness on a global scale.

3. Energy Reliability and Sustainability

A vital component of the proposals is improving Mexico’s energy matrix. AMIA advocates for a reliable supply of clean energy to help automotive companies meet their sustainability targets. Transitioning to renewable energy sources is essential for aligning the industry with global green initiatives.

4. Upgrading Infrastructure

To facilitate seamless operations, AMIA highlights the need for improved physical and digital infrastructure. Streamlining customs operations and expanding capacities at ports, border crossings, and airports will enhance the efficiency of supply chains and bolster trade relations.

5. Leveraging Trade Agreements

The association encourages the Mexican government to capitalize on existing treaties like T-MEC to strengthen regional cooperation. Additionally, it suggests advancing negotiations with the European Union, the United Kingdom, Brazil, and Argentina, which could open new markets and opportunities for growth.

6. Aligning Workforce Development

AMIA underscores the importance of integrating job offerings with the evolving needs of the automotive industry. By aligning educational programs with technological advancements and industry requirements, Mexico can ensure a skilled workforce prepared for the challenges of the future.

7. Modernizing Vehicle Registration

A modern and efficient vehicle registry is crucial for the automotive sector. AMIA proposes developing a new General Law for Vehicle Registration to create a functional and reliable system that can support the industry's growth.

8. Ensuring Market Transparency

To foster fair competition, AMIA calls for the establishment of a transparency framework within the national market. This framework will help regulate the activities of major players in the automotive industry, promoting healthy competition and consumer trust.

9. Updating Regulatory Frameworks

Recognizing the need for an agile regulatory environment, AMIA advocates for a comprehensive review and update of existing regulations. An updated framework will provide the necessary legal and operational clarity to support industry growth and innovation.

10. Ensuring Security

Finally, AMIA emphasizes the importance of guaranteeing security for automotive companies and their operations. Addressing concerns in auto transport, supply chains, and goods distribution is essential for fostering a stable and secure business environment.

Conclusion

The proposals put forth by AMIA represent a strategic vision for the future of Mexico's automotive industry. By focusing on electromobility, investment attraction, infrastructure improvements, and regulatory updates, the automotive sector can position itself as a leader in the global market. As Claudia Sheinbaum’s government takes office, the successful implementation of these proposals could drive significant economic growth and pave the way for a sustainable automotive future in Mexico.


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