Mexico’s government had a busy week boosting its commercial relationships. The country was the first to ratify CPTPP and reach an agreement on rules of origin for vehicles in the FTA EU-MX. NAFTA negotiations could also be reaching a conclusion in the coming weeks. However, a new US proposal called for 40 percent of regional content be produced in high-salary areas of North America.
Mexico is the first Latin American nation to be a guest country at Hannover Messe. At the event, President Enrique Peña Nieto underlined the attractiveness of Mexico for automotive companies. Moreover, the government of Guanajuato signed several letters of understanding with companies present at the event to attract more investment to the state.
Domestically, the Mexican automotive market continues to face low sales and 10 out of 28 automotive brands reporting to AMIA closed 1Q18 in the red. However, ANPACT reported 20.8 percent growth in sales in the heavy-vehicles sector.
What cars are top sellers in Mexico’s contracting market? Check out Mexico Automotive Review’s “The Mexican Car Sales Grand Prix” to find out.
How can Mexico City’s authorities make urban transportation safer and more sustainable in one of the most populous cities on Earth? Mexico Automotive Review asked Laura Ballesteros of SEMOVI for her view.
Rev your engine, here’s your weekly news roundup:
Boosting FTAs and Attracting FDI
Mexico is the first member-country to ratify CPTPP and it has also reached an agreement on rules of origin with the EU. Regional content for vehicles will be kept at 60 percent in FTA EU-MX.
NAFTA 2.0 negotiations could conclude in the coming weeks, according to the presidents of Mexico and the US, but negotiations face a new challenge as the US proposed that 40 percent of regional content be produced in areas with high salaries.
At a conference in Hannover Messe, President Enrique Peña Nieto talked about the success and advantages of Mexico for the German industry. He underlined that the country is key for Industry 4.0 projects. During event, the Government of Guanajuato landed automotive investments worth US$254 million.
Low Light-Vehicle Sales but Heavy-Vehicles Recover
Sales of new vehicles in Mexico fell 15.6 percent in 1Q18 compared to the same period in 2017. Ten of the 28 brands that report to AMIA closed the first quarter with red ink.
China’s Drive in Mexico’s Automotive Industry
Providing few details, Concanaco Servytur reported that Mexico’s first assembly plant of electric, self-driving vehicles will come from Chinese investment.
Didi Chuxing enters the Mexican e-mobility market by starting operations in Toluca.