Background on Key Figures and Relevance
Raúl Moreno, the CEO of NextGen Intelligence (an expert in mobility), and Gabriel Padilla, Director of the National Automotive Parts Industry (INA), are central figures in this discussion. Their insights shed light on the complexities of North American automotive integration, especially concerning China’s role in supplying critical components.
Experts’ Perspectives on Disengagement
During the MEXcelerate – México: ¿VE (electric vehicles)? webinar organized by DOW consultancy, Padilla emphasized the importance of converting Mexico into a hub for the automotive industry not just in North America but across the Americas.
“In negotiations, it’s suggested that Mexico should opt for industrial disengagement from China. However, detaching ourselves from China at an industrial level is not a simple task; it’s more about finding common ground with North America and the United States to agree on parts and components that the industry cannot replace, while revising the T-MEC,” Padilla explained.
Focus on Regional Integration
The automotive parts industry prioritizes greater integration within North America, despite increased pressure to boost regional content and comply with T-MEC regulations.
China’s Technological Influence
Padilla referenced Ford CEO Jim Farley’s statement about the U.S. losing the technological race, as China sets the technological trend.
“In China, technology decisions drive vehicle purchases rather than price. In the West, we still prioritize affordability,” Padilla noted.
Strategic Hybrid Approach
Alberto Gómez, Director of LATAM Sales at Krayden, agreed that dependence on China’s technological advancements is inevitable. He advocated for a hybrid strategy where both China and the U.S. complement each other to foster growth in electric vehicle infrastructure.
Push for Electric Vehicle Infrastructure
Experts in the automotive sector stressed that the Mexican market should prioritize infrastructure development and business incentives for fleets to continue driving the expansion of electric vehicle charging networks, especially for public and passenger transportation.
“As investors see growing demand for electric vehicles, they will establish more charging parks,” Gómez concluded.
Key Questions and Answers
- Q: What is the automotive industry’s primary goal regarding North America and China? A: The main objective is to achieve greater integration within North America, despite increased pressure to boost regional content and comply with T-MEC regulations.
- Q: How do experts view the possibility of disengaging from China industrially? A: Experts consider it a utopian idea, as Mexico, Canada, and the U.S. remain heavily dependent on Chinese minerals and critical components like rare earth elements.
- Q: What role does China play in the automotive technology landscape? A: China sets technological trends, with consumers prioritizing technology experience over price when purchasing vehicles.
- Q: What is the recommended strategy for balancing reliance on China and the U.S. in the automotive sector? A: A hybrid approach is suggested, where both China and the U.S. complement each other to foster growth in electric vehicle infrastructure.
- Q: How can the Mexican market support electric vehicle adoption? A: The market should prioritize infrastructure development and business incentives for fleets to expand electric vehicle charging networks, particularly for public and passenger transportation.
