The Bajio region crowned itself champion in FDI attraction in 2018. Queretaro’s auto parts industry attracted a record breaking US$313.8 million in 2018 as Guanajuato landed new investment projects and maintained a 1.5 percent economic growth in the first eight months of 2018. Projects such as Bosch’s plant in Apaseo el Grande are getting ready to start production. Additionally, a demand for tank trucks and fleet renewals powered growth of heavy vehicle sales in Mexico.
There were several announcements on EVs this week. The new Model 3 by Tesla has finally reached the Mexican market. The company plans to modify its sales strategy by closing most of its showrooms and give a big push to online sales.
In other news, the Ghosn scandal has prompted Nissan and Groupe Renault to renegotiate their alliance to reach more equal footing. In terms of recalls, Honda and FCA recalled several hundreds of thousands of vehicles in the US and Canada due to defective airbag inflators and failure to meet emissions regulations, respectively. Due to a challenging sales downturn, Kia Motors de México has reduced its sales growth projection for 2019 to only 6 percent.
The road is clear. This is the week in review!
Mexico’s Automotive Drive
Queretaro’s auto parts industry attracted US$313.8 million in 2018. It was the most successful year in terms of FDI attraction in history for the state.
In the first eight months of 2018, Guanajuato reached economic growth of 1.5 percent. The new state administration plans to keep that pace and has secured 34 new investment projects since entering office.
Beat had a good start in Mexico City. Over 40,000 drivers have registered in the platform since its deployment and the company is getting ready to enter Monterrey and Guadalajara.
The new Robert Bosch plant in Apaseo el Grande will start operations by 4Q19. Electronic components such as ECUs for the automotive industry will be produced there.
In February, the Mexican automotive industry sold 263 more heavy vehicles than in the same month of 2018. This demand was powered by fleet renewals and demand for tank trucks.
Toward an Electrified Future
The new Model 3 has reached the Mexican market. Tesla went through several challenges to reduce the costs of this vehicle.
Tesla has made some changes to its strategy. It will not close all its showrooms but will give a strong push for online sales.
A Challenging Environment
Kia has reduced its sales growth projections for 2019 in Mexico to 6 percent or 100,000 vehicles.
Volkswagen Group will cut 7,000 jobs as the company struggles to increase profitability of the Volkswagen brand.