Truck exports will not reach pre-pandemic level

Mexican exports of medium and heavy trucks will total 7,000 million dollars in 2022, which implies a year-on-year increase of 14.8%, but also a level below that registered before the Covid-19 pandemic, the United States Department of Commerce projected. Joined.

After reaching $7.5 billion in 2019, these international sales fell to $5.2 billion in 2020 and then recovered to $6.1 billion in 2020.

Mexico is the sixth largest producer of heavy cargo vehicles, home to 14 manufacturers and assemblers of buses, trucks, tractor-trailers and engines.

These producers maintain 11 manufacturing plants, supporting more than 24,000 jobs across the country. Mexico is the world’s leading exporter of trucks, of which 95.1% goes to the United States. Mexico is also the fourth largest exporter of heavy cargo vehicles. The main players are Cummins, Detroit Diesel Allison, Freightliner-Daimler, Kenworth Mexicana, Mack Trucks de Mexico, International-Navistar, Dina Trucks, Scania, Volvo Group VW, Man Truck & Bus, Mercedes-Benz, Hino Motors and Isuzu Motors.

This trend occurs while the preliminary report of the ruling of the panel on rules of origin in the automotive industry requested by Mexico and Canada against the United States within the framework of the T-MEC was delivered on October 12, as scheduled.

In this regard, César Hernández, director of the Publius consultancy, said that whatever the decision of that panel may be, it must be respected to give certainty and competitiveness to the regional automotive industry.

The ruling of the preliminary panel is of a private nature, it will be made public expectedly next month and it will be favorable, according to Hernández’s projections, for Mexico and Canada. In order to provide vehicle manufacturers with time to adapt to the new requirements, the T-MEC offers the opportunity for manufacturers to request an Alternative Transition Regime (RTA), which allows an adapted plan to gradually comply with the levels regional content for up to five years before meeting standard requirements.

To meet the RTAs, the companies’ plans included a commitment to make additional investments in the US and North America, or additional purchases of US and North American parts, steel or aluminum.

The T-MEC requires that 70% of the content of a truck be produced in North America, and that the basic parts of the automobiles come from the US, Canada or Mexico.

roberto.morales@eleconomista.mx