presentación de powerpoint - sindipecas€¦ · the automotive sector contributed 12% of the fdi...

2 2

About us

We represent manufacturers of auto parts at the federal, state and

local levels as well as with higher education

institutions and the rest of the society.

http://www.dacomsa.com/index.php

http://www.amia.com.mx/index.html

China

U.S.

Japan

Germany

India

Korea

Mexico

Spain

Brazil

Canada

United Kingdom

Czech Republic

0 5 10 15 20 25 30 35

Production Export

7º 4º

World Ranking

Domestic

Exports

Source: INA with information from Automotive News, Marklines

Million Units

Production & Export/Domestic Market Ratio, 2018

3

Perspectives of the Automotive Sector

4%

14%

49%

80%

16%

61%

82%

82%

22%

81%

84%

88%

Why the leading players continue moving to Mexico?

North America

South America

Europe

Africa

Asia

5

Geographic Location Perspectives of the Automotive Sector

that supply and support the OEM with regional content.

In Mexico there are approximately

600 Tier ones

6

T1 Suppliers Perspectives of the Automotive Sector


Source: Mexican Ministry of Economy

Mexico has 13 free trade agreements with 52 countries, exporting:

3.4 millions of vehicles

79 billions in auto parts

7

Wide Range of Export Markets Perspectives of the Automotive Sector

Food Industry

Automotive Industry

Industries Metallic

Basic

8

Contribution to GDP Manufacturing, 2018

Chemical Industry

Industries of the Drinks and

Tobacco

Source: INA with information from INEGI


22.4%

18.5%

8.4% 6.5% 5.8%

Source: Mexican Ministry of Economy

The automotive sector contributed 12% of the FDI received in the country, with a total of

61,691 million dollars in the period of 2001-2018

Mill

ion

s D

olla

rs

9

FDI in the Automotive Sector 2001-2018 Perspectives of the Automotive Sector

12,609 13,381 35,806 8,000

6,000

4,000

2,000

0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2003 2004 2005 2006 2007 2018 2001 2002

6.1%

167.6% 6.1%

3,845

1,507

4,070 3,908

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 0

1,000

2,000

3,000

4,000

3,393

3,592

3,449

452 459

1,094

413

478

In 2022 Mexico will produce 3.8 million vehicles,

principally for export.

10

Light Vehicle Production in Mexico, 2002 - 2022 Perspectives of the Automotive Sector

Source: INA with information from IHS Markit

Tho

usa

nd

s U

nit

s

Forecast Production bound

for exports Prodution bound for the domestic market

+ 170 %

Source: INA with information from AMIA 11

Exports of Light Vehicles per Region, 2002 vs 2018 Perspectives of the Automotive Sector

Total: 3,449.2 Th

ou

san

d o

f U

nit

s

Total: 1,312

75 %

7 %

8 %

7 %

3 %

85 %

15 %

Mill

ion

Do

llars

Source: INEGI. Economics Data Bank. External Sector 12

Balance of Trade of the Automotive Sector, 2006-2018 Perspectives of the Automotive Sector

0

20,000

40,000

60,000

80,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

82,880

2018

Source: INA with information from IHS Markit 13

Forecast of Light Vehicle Production in Mexico, 2019-2025 Perspectives of the Automotive Sector

Un

its

874,503 2019

2020

700,726 478,353 303,467

2021

2022

847,034

795,433

777,946

642,100

633,205

619,216

439,157

444,197

405,168

299,705

290,329

273,798

595,276

463,518

427,971

412,810

214,767

209,451

132,948

165,560

190,318 *

200,617 *

199,305 *

221,551 *

241,377

252,423

277,305

308,671

170,321

180,024

165,588

158,727

24,494

87,936

97,798

163,909

165,931

161,246

196,197

194,482

77,366

113,859

101,218

99,667

33,580

30,976

44,333

43,351

4,070,479

3,928,046

3,805,827

3,844,856

OEM

749,623 2023

2024

613,182 372,534 300,649

2025

720,023

843,725

603,306

582,186

372,178

431,444

323,508

320,867

427,972

433,152

463,230

182,083

176,150

168,740

363,996 *

366,335 *

360,330 *

324,931

321,872

319,887

174,627

223,412

265,903

165,628

160,910

152,495

179,827

199,453

206,444

98,659

94,709

96,023

43,941

42,424

44,179

3,997,652

4,037,432

4,255,453

* It includes production wich is made on the plant of Mazda in Salamanca, Guanajuato and Tijuana

Source: INA with information from INEGI and IHS Markit 14

Production and Exports of Commercial Vehicles

86.8

176.8 185.4

0

2010 2011

50

200

150

100

2012 2013 2014 2015 2016 2017 2018 2019

Tho

usa

nd

Un

its

Production for exports Production for domestic market

155.7 147.7

29.7 29.1

62.7

24.1

Forecast

+ 114 %

15

Production of Auto Parts by Country, 2018 Perspectives of the Auto Parts

Sector

Mexico is the 5th producer of auto parts in the world with

94 billion dollars.

Forecast for 2019 is

98 billion dollars

China Japan Mexico India Brazil

United States

Germay South Korea

Canada Italy

Source: INA with information from INEGI, includes auto parts that are considered in other branches of the NAICS code

Thailand

0

Bill

ion

Do

llars

100

300

600

16

Foreign Auto Parts Manufacturers Located in Mexico

Source: INA with information from ProMexico

Origin of the auto parts manufacturers located in Mexico

Example of auto parts manufacturers in Mexico

17%

11%

10%

9%

The location of the world leading auto parts manufacturers, strengthens the

Mexican production chain.

Perspectives of the Auto Parts

Sector

Other

34%

18% 17%

11%

10%

9%

2%

2%


17

Employment in the Automotive Manufacturing Industry of Mexico, 2018

Source: INA with information from INEGI.


Sector

Thousand People

Motor Vehicles Auto Parts


(Million Dollars)

18

Mexican Exports & Imports of Auto Parts by Country, 2018 Total Production: 94,451

United States

Canada

Brazil

China

Japan

Germany

United Kingdom

Others

Total

Trade Balance

Country Exports Country Imports

United States

China

Japan

South Korea

Germany

Canada

Brazil

Others

Total


Sector

68,874 86.8%

3,116 3.9%

1,383 1.7%

2,962 3.7%

79,310

25,154

100%

26,760

7,861

3,373

7,428

54,156

49.4%

14.5%

6.2%

13.7%

100%

1,197 1.5%

807 1.0%

3,059

2,939

5.6%

5.4%

644 0.8%

326 0.4%

1,963

772

3.6%

1.4%

Share (%)

Share (%)

Auto Parts Business with Mexico

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Vehicle

Production in Brazil (units)

2,977,150 3,215,976 3,182,923 3,381,728 3,407,861 3,402,508 3,712,380 3,146,386 2,429,421 2,156,356 2,736,802 2,879,809

Mexican Exports of Auto Parts

to Brazil (thousand dollars)

$ 200,905 $ 270,127 $ 204,688 $ 324,815 $ 438,963 $ 616,069 $ 825,163 $ 864,744 $ 893,883 $ 807,267 $ 1,159,585 $ 1,382,929

Dlls / Vehicle $ 67 $ 84 $ 64 $ 96 $ 129 $ 181 $ 222 $ 275 $ 368 $ 374 $ 424 $ 480 Vehicle

Production in Mexico

(units)

$ 2,022,241 $ 2,102,801 $ 1,507,527 $ 2,260,809 $ 2,557,550 $ 2,884,869 $ 2,933,465 $ 3,219,786 $ 3,399,076 $ 3,465,615 $ 3,932,119 $ 3,908,139

Mexican Imports of Auto Parts from Brazil

(thousand dollars)

$ 958,851 $ 1,185,631 $ 826,421 $ 729,326 $ 738,397 $ 697,877 $ 605,659 $ 547,957 $ 511,679 $ 536,650 $ 564,238 $ 771,810

Dlls / Vehicle $ 474 $ 564 $ 548 $ 323 $ 289 $ 242 $ 206 $ 170 $ 151 $ 155 $ 143 $ 197

Brazil Mexico

(Million Dollars)

20

Auto Parts 2017 2018

7,703

5,640

4,275

3,540

3,404

3,634

2,288

2,040

Growth

(%)

Air bags and its parts

Total

2,533

73,464

8,779

5,466

4,721

4,516

4,249

3,470

2,733

2,426

2,210

79,310

14.0%

-3.1%

10.4%

27.6%

24.8%

-4.5%

19.5%

18.9%

-12.8%

8.0%

11.1%

6.9%

6.0%

5.7%

5.4%

4.4%

3.4%

3.1%

2.8%

Share (%)

100%

Devices for air conditioner 2,014 2,169 7.7% 2.7%

Main Auto Parts Exported by Mexico Perspectives of the Auto Parts

Sector


Harnesses and cables

Gearboxes and its parts

Stamped parts and accessories of bodies

Differential axles and its parts

Brake mechanisms

Apparatus for lighting or visual signaling

Seats for vehicles and its parts

Engines and its parts

Strategic Program of the Automotive Industry Vision 2024

4

22

Main topics of the Automotive Sector

1

3

2

4

Strengthening of the internal market: improve

the environment and reach the market potential.

Research, development of technology and innovation

To improve the business environment: cost per country.

Foreign trade: access to the international

markets

Main topics of the Automotive Sector Strategic Program of

the Automotive Industry: Vision 2024

23

Sales of Light Vehicles per Thousand People, 2018

Source: INA with information from AMDA, United Nations and Marklines

Sales vehicles (Thousands)

Millions of population Country

Units per thousand people

Strategic Program of the Automotive

Industry: Vision 2024

17,334 330 United States

2,044 37 Canada

5,272 126 Japan

3,764 81 Germany

2,633 65 France

53

54

42

46

40

28,081 1,400 China

1,421 133 Mexico

682 45 Argentina

257 49 Colombia

2,475 214 Brazil

20

11

15

5

12

417 19 Chile 22

24

Supply Chain

T1

T2

T3

OEM

T1

T2

T3

OEM

Materias primas FDI

Mexican Supplier

Development

Developed Country Mexico

GM FCA Ford Nissan

VW BMW Mazda etc.

Bosch Magna JCI

Lear Nemak etc.

Manufacturing Process

Raw Material

Tool Makers



Global Competitiveness Index, 2018 (Mexico vs G20)

25 Source: INA with information from World Economic Forum


0

55

59

63

67

71

75

79

Co

mp

etit

iven

ess

Ind

ex

Measures how a country uses the resources it has and its capacity to provide its inhabitants with a high level of prosperity.

• Institutions • Infrastructure • Macroeconomic environment • Health and primary education • Higher education and training • Efficiency of the goods market • Labor market efficiency • Development of the financial market • Technological preparation • Size of the market • Business sophistication • Innovation

Variables to determine the economic prosperity

83

87

USA (1)

Alemania (3)

Japan (5)

United Kingdom (8)

Canada (12)

Australia (14)

South Korea (15)

France (17)

China (28)

Italy (31)

Saudi Arabia (39)

Russia (43)

Indonesia (45)

Mexico (46)

India (58)

Turkey (61)

South Africa (67)

Brazil (72)

Argentina (81)

26

The main focus today in INA

Maintain, protect, review and

improve existing free

trade agreements



USMCA / T-MEC in “The Next Room"

28

North

America

Mexico

Europe East

Turkey China

Korea Japan

Regions of the automotive producers in the world

Malaysia

Philippines Morocco

Tunisia Vietnam

Thailand

Europe

Low cost countries



29

History of Automotive Exports of Mexico to United States


Mill

ion

s o

f d

olla

rs

Auto Parts ( 472 ITEMS )

Heavy Vehicles ( 23 ITEMS )

Light Vehicles ( 24 ITEMS )



20,000

0

10,000

60,000

40,000

70,000

2011 2012 2013 2014 2015 2016 2017

65,249

48,360

8,982

40,999

24,655

6,011

30,000

50,000 46,703

52,032

58,440 61,458 63,512

28,077

34,625 37,505 40,301 41,648

6,325 6,915 9,993 11,081 7,489

2020

68,874

53,230

11,846

2018

73,271

53,501

9,506

30

U.S. Trade Deficit with the world in 2018

Source: International Trade Centre (ITC)



85 $

Deficit

2do.

Ranking

100

0

200

Bill

ion

do

llars

300

400

China

Mexico

Japan

Germany

Ireland

Vietnam

Italy

Malaysia

Canada

India

Thailand

S. Korea

Switzerland

France

Russia

Indonesia

31

U.S. Trade Deficit with Mexico in 2018

Source: International Trade Centre (ITC)

Bill

ion

do

llars



-40

-60

-20

0

20

-80

Pet

role

um

, Co

al

Pla

stic

s an

d

the

ir

man

ufa

ctu

res

Ele

ctri

cal

Equ

ipm

en

t,

Ap

plia

nce

Co

mp

ute

r &

El

ect

ron

ics

Tran

spo

rtat

ion

Eq

uip

mn

et

-85

18.0 12.1

-20.6 -17.6 -71.6

84%

32

Production of Light Vehicles in NAFTA


19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

11.6 Millions

Units

3.8 Millions

Units

1.8 Millions

Units

Forecast

2

Mill

ion

s U

nit

s

0

14

12

10

8

6

4


Industry: Vision 2024 |||

33

Imports of Auto Parts to the NAFTA region in 2018

Japan China Millions dollars

$16,828 $24,377 U.S.

$3,373 $7,861 Mexico

$35,402 Total

$2,228 $3,164 Canada

Germany

$12,141

$2,939

$811

$22,429

GRAND TOTAL $85,958

$15,891

Korea

$8,665

$3,059

$512

$12,236

Source: INA with information from US Census Bureau , Statistics Canada and SAT



34

Light Vehicles and Pick Ups

NAFTA 1.0

USMCA NAFTA 2.0

Just one rule RVC = 62.5%.

FOUR RULES 1. RVC = 75% 2. 70% steel and aluminum content from NAFTA 3. 40% cost in salary region of $ 16 dlls / hour (U.S. and

Canada) 4. Incorporation of the NAFTA Core Parts



35

Incorporation of the Core Parts

Rule 4

The 7 Core Parts of the car must be produced in the region and each of them must have the Key Parts made equally in the region and the average RVC of all of them must be greater than 75%

1. Axles and drive shaf (Includes: Axle shafts, Axle housings, Axle hubs, Carriers, Differentials) 2. Bodies (Includes: Major body panels, Secondary panels, Structural panels, Frames) 3. Engines (Includes: Heads, Blocks, Crankshafts, Crankcases, Pistons, Rods, Head subassembly, Engine final

assembly) 4. Steering (Steering columns, Steering gears/racks Control units) 5. Suspension (Includes: Shock absorbers, Struts, Control arms, Sway bars, Knuckles, Coil springs, Leaf

springs) 6. Transmissions (Includes: Transmission cases, Torque converters, Torque converter housings, Gears and

gear blanks, Clutches, Valve body assembly, Transmission final assembly) 7. Lithium Batteries (Includes: Cells, Modules/arrays, Assembled packs)

CORE PART KEY PARTS



Taxes in case of not complying with the new rules

36

If the vehicle or the auto part not comply with the indicated rules, they must pay the corresponding tax established in the WTO.

Light Vehicles

2.5%

Pick Ups 25%

Truck 2.5%

Thorntons 25%

Auto Parts 0% - 6 % ≈ 2.2%



Section 232 of National Security

37

Europe

Currently the United States is negotiating with Europe and Japan, refining its treaty with South Korea (Korus) so that among other things, vehicles manufactured in the United States do not have to pay taxes to enter those countries. Putting as a pressure measure, taxes of up to 25% under section 232. The United States needs eliminate the taxes barriers in these countries, to sell more vehicles manufactured with Mexican auto parts.

Example: Taxes Most Favored Nation (MFN) / WTO

U.S. Light Vehicles pay 10% of taxes to enter in Europe and European vehicles only pay 2.5% of taxes to enter to U.S.

Japan

U.S. Light Vehicles pay 20% of taxes to enter to Japan and Japanese vehicles only pay 2.5% of taxes to enter to U.S.

A “Side Letter" was negotiated that excludes the Mexican exports of light vehicles and auto parts of 2.6 million cars and 108 billion dollars of auto parts, that represent 40% more than the exports in 2017.



Balanza comercial

Total

BMW

833,518

Audi

VW

Germany Units

250,626

214,674

226,511

86,287

Mercedes Benz

55,420 Porsche

Balanza comercial

Total

FIAT

34,682

Alfa Romeo

Ferrari

Italy Units

13,807

5,448

12,031

2,340

Maserati

1,056 Lamborghini

Balanza comercial

Toyota

Nissan

Mazda

Japan Units

562,555

323,604

328,872

289,470

Subaru

160,900 Lexus

Balanza comercial

Honda

Mitsubishi

112,971

116,774

103,578

Infiniti

1,237 Acura

Total 2,000,166

Total

KIA

604,862

Hyundai

Korea Units

382,491

222,371

Volvo

Sweden Units

81,507

Balanza comercial

Total

Land Rover

117,884

Jaguar

Mclaren

U.K. Units

74,739

2,405

39,594

1,110

Bentley

36 Lotus

Imported Vehicles by United States in 2017 (outside of NAFTA)

Source: INA with information from Automotive News



3,672,619

Potential to come into U.S. 3,078,848

39

Autonomous Driving Technology Value Chain Strategic Program of

the Automotive Industry: Vision 2024

Tier 0.5

Silicon, Sensors and HD Maps

System Hardware & Software

AI Algorithms & Frameworks

Car Manufacturers

Cloud & Mobility Services

Tier 1

Tier 2 Silicon Sensors HD Map

OEMs

NOTE: Overview shows examples, overview not complete

Source: INA with information from Visteon

40

Investment in Research and Development in Selected Countries

Source: World Bank

South Koresa

% G

DP

OF

20

13

2

0

3

4

Japan

1

Sweden

United States

Germay

France

China

Canada

United Kingdom

Spain

Brazil

Argentina

Mexico

Mexico 1% en 2021

0.5

4.1 3.4 3.3 2.8 2.8

2.2 2

1.6 1.6

1.2 1.1 0.5



Last Points 5

Maximum Risks to Automotive manufacture

world map

43

History of Light Vehicle Sales in China, 2005-2018

Mill

ion

Un

its

Source: INA with information from OICA

+45%

+32%

+2% +4% +14%

+8% +4%

+14% +3%

China

-3%

Last Points

Thank You Oscar Albin

Industria Nacional de Autopartes

Executive President

[email protected]

presentación de powerpoint - sindipecas€¦ · the automotive sector contributed 12% of the fdi...

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