The political landscape in the United States always weighs heavily on Mexico’s economic decisions, particularly in the automotive market.
However, the evolution of electromobility in Mexico seems to be taking an independent course, beyond ideologies and changes in the White House administration.
This is affirmed by Daniel Hernández Camacho, President of the National Network of Automotive Industry Clusters in Mexico (RedCAM), during the International Mobility Portal Summit “Electric Vehicles: New Opportunities for Strategic Markets: Latin America and The Caribbean”.
The expert asserts that market demand and supply chain opportunities will be the real drivers of the transition to electric mobility in the country.
Politics versus market: who holds the control?
With the presidential election in the United States, analyses and speculations on the impact of a potential return of Donald Trump to power are intensifying.
In this context, Trump’s protectionist policies and sceptical view of electromobility could hinder the adoption of clean technologies in the northern neighbour.
However, the President of the National Network of Clusters insists that Mexico cannot and should not rely solely on the political decisions of the United States.
“We are in a region deeply intertwined in its supply chains, and the competitiveness of this region depends on that. Regardless of who wins the elections, what will make the difference is market demand,” he emphasises.
Despite the possible barriers that may arise in the future, the Latin American country has a unique opportunity to establish itself as a key player in the production and export of electric vehicles, especially in the context of the trade war between the United States and China.
While Joe Biden’s government is promoting policies favourable to the energy transition, the competition with China opens a window of opportunity for Mexico, which could become the ideal bridge for the North American market.
Hernández Camacho highlights that, although foreign investments must comply with the legal framework and international commitments, the country must be prepared to welcome both Chinese and American companies wishing to establish themselves on Mexican soil.
Moreover, the arrival of Claudia Sheinbaum to the presidency adds another dimension to this complex equation.
With a focus on sustainability, Sheinbaum faces the challenge of balancing relations with the United States and China, two powers with often conflicting interests in the field of electromobility.
“We will respect business freedom and promote and facilitate, with honesty, both national and foreign private investment that fosters social welfare and regional development, always ensuring respect for the environment,” the politician stated after the results were announced in her favour.
For Hernández, it is crucial that Mexico maintains a clear and coherent stance, where any investment that meets the regulations and market needs is welcome, regardless of its origin.
A path towards transition
On its part, RedCAM is fundamental in promoting sustainable mobility in Mexico, fostering collaboration between regions and industrial sectors.
With a forward-looking vision, the executive stresses that the institution’s next steps will focus on strengthening the supply chain and preparing companies for an environment where internal combustion and electric technologies coexist.
“The challenge of the transition to electromobility is connected with opportunities in the supply chain. It is vital to exchange knowledge between different regions to continue driving the growth of companies that are part of the clusters,” explains Hernández Camacho.
The fact is that the path towards electric mobility in Mexico is set, and although political winds may change direction, the country keeps moving forward.
So, whoever wins the elections in the United States, the Mexican automotive industry is ready to face the challenges and seize the opportunities that lie ahead.
Watch the interview from the International Mobility Portal Summit “Electric Vehicles: New Opportunities for Strategic Markets: Latin America and The Caribbean”
