In a move towards embracing global competition, the National Association of Bus, Truck, and Tractor Producers (ANPACT) has expressed its openness to Chinese brands entering the Mexican market. Rogelio Arzate, the new Executive President, ANPACT, emphasized the association’s commitment to fair competition and ongoing discussions to integrate these brands
“ANPACT supports competition because it benefits the country and our customers, regardless of the origin of the new brands. However, it has to be fair competition that improves our situation” Arzate said in a press conference.
This welcoming stance comes at a crucial time for the Mexican automotive industry, which is facing challenges such as the importation of used and obsolete trucks, market uncertainty due to upcoming US elections, and supply chain disruptions. Despite these issues, Arzate believes that embracing international brands, including those from China, can drive positive change and growth within the industry.
Although specific details were not disclosed, Arzate mentioned that ANPACT is already in talks with several Chinese companies about joining the association. One notable example is FOTON Mexico, part of Beijing Auto Group, which successfully integrated into ANPACT in 2022.
Challenges in the Domestic Market
Arzate highlighted several factors currently impacting the domestic market. The importation of used trucks has contributed to a decline in vehicle sales, while the American market’s economic slowdown and electoral uncertainty have further affected demand. “The American market is at a standstill due to their elections, and the economy is down. Our members export 80% of their production to the United States, which has affected demand and our total sales projection,” Arzate explained.
To combat the influx of obsolete heavy vehicles, ANPACT is working with the National Vehicle Registry (REPUVE) to establish a physical-mechanical inspection protocol. This initiative aims to assess the condition of incoming units and restrict those that do not meet standards. Furthermore, ANPACT is developing incentives for purchasing new units to promote sector renewal, given that the average vehicle age is 18 years.
Additionally, the supply chain has faced setbacks, such as the fire at the Mekra Lang plant in Nuevo León in April, which delayed the assembly, sale, and delivery of units. “The supply chain is still recovering from these disruptions,” Arzate added.
On the topic of environmental impact and emissions, Arzate assured that ANPACT members are prepared to adopt EURO VI fuel emission standards, which are not yet mandatory in Mexico. “We are ready to offer EURO VI compliant diesel, but it is important to have a specific distribution strategy. What we seek for our members is that it must be properly marked where the necessary diesel is available,” Arzate noted.