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José Zozaya, Presidente, AMIA (The Mexican Association of the Automotive Industry)

José Zozaya, Presidente, AMIA (The Mexican Association of the Automotive Industry)

05 June 2023

What is the role of AMIAin the Mexican automotive industry?

AMIA was established in 1951 and our mission is to represent the common interest of the 24 OEMs that are present in the country as well as the major importers of new light vehicles. Our activity consists of creating a bridge between the government and the automotive industry, in relation to all the legislative and commercial measures that might impact our evolution. We are also interested in promoting the achievements of the industry across the media as well as across the political spheres. 

The automotive sector in Mexico is making an important contribution to the country's GDP as we have leadership positions in the production and export of cars. We are taking the seventh place in car manufacturing and the fifth place in car exporting worldwide. At the moment, we are exporting 90% of our total production, with 80% of the vehicles being shipped to the U.S. and Canada. As a result, our goal is to maintain and even surpass these performances while also advocating for greater effectiveness and competitiveness across the entire sector.  Ultimately, it all boils down to nurturing a more sophisticated automotive market. 

In what way does AMIA support the adoption of new technologies in the Mexican industry?

We are already building electric cars in our country, and we try to adopt as many clean energy technologies as possible. The fact that industry is poised to complete this green transition is the strongest proof of our commitment towards sustainability, exchanging internal combustion engines with electric propulsion helping the decarbonization of the planet. In order to reach this goal, we hope that not only OEMs but also auto parts manufacturers will make a contribution.

What makes Mexico a profitable market for investment?

We have a one-hundred-year-long tradition of car manufacturing that is perfectly complemented by skilled workforce and competitive wages. Furthermore, the legal framework is easily navigable by foreign investors and our geographical position offers a great deal of opportunities. Due to these reasons, many car manufacturers decide to open new plants in Mexico, with Tesla being the most recent example in this sense. Because we want to expand on all these possibilities, we are constantly working with the regulatory bodies to establish an even more open communication that could lead to new lines of action. 

What are the main challenges that you are expecting to encounter during the following few years?

 

Developing a proper infrastructure with charging stations in key points and finding as many sources of clean energy as possible are some of the subjects that we are trying to tackle.

 

Although some automakers are putting their own infrastructure in place, we need to back this up with governmental decisions in order to speed up the process as much as possible. Drawing a compelling public policy on electromobility and educating the wider public about these new technologies are also important themes of discussion that we are thinking of approaching in the following years.

What is your view on the discussion regarding the way the industry sources materials for EV batteries? 

I think there is always a lengthy process behind every major transition the world is going through so we need to address all these concerns one at a time. Thankfully, we have several lithium reserves in Mexico and this puts us in a privileged position when it comes to battery production. Moreover, the government is interested in establishing specific hubs where the material is going to be foraged and the batteries are going to be built, in this way reducing any possible environmental effects. 

Where does your passion for the automotive industry stem from?

I believe that without being deeply passionate about this industry, it would have been very difficult to represent the association in a meaningful way. The automotive sector has brought such a positive effect on the entire economy of the country that it is impossible to not root for its further success. The lives of 40 million people (1 million being directly supported) are touched by this industry and this is not an easy to dismiss fact. 

What are the main objectives for AMIA in this ever-changing context, from here to the next ten years?

We plan to work even more closely with the government in order to make sure that they understand the needs of the industry and that they do not overrule it. Facilitating the administrative process in order to help Mexico become an even more attractive market for international players is the mission that pushes us forward every day.