Global vehicle production is clearly recovering following the impact of the Covid pandemic.
Gerardo Gómez Gálvez, senior director & country manager Mexico at JD Power , highlighted that production of 89.8 million units is projected for 2024 on a global scale , and although growth towards 100 million was expected earlier, it is now estimated that it will not arrive until 2032, mainly due to the long-term effects of the pandemic.
In Mexico, according to JD Power estimates, production shows a positive trend, having reached 3.4 million vehicles in its latest report for the first 10 months of the year.
At the 10th edition of Automotive Logistics & Supply Chain Mexico , Gómez Gálvez said that the country’s production capacity could reach 5.8 million, which is “a sign of the potential to attract investments from Chinese and American brands” in the region.
In this sense, according to JD Power, by 2030, 60% of vehicle sales worldwide will be hybrid or electric .
“This will be driven primarily by the development of favorable legislation and greater incentives in markets such as China, the United States and Europe,” said the executive.
He stressed that in Mexico, the penetration of hybrid and electric vehicles is still low, representing only 8% of sales in 2024.
Despite a projected growth of 18% by 2030 , factors such as infrastructure and high prices remain significant barriers to faster adoption in the country, said Gerardo Gómez.
He also highlighted the growth of Chinese brands that manufacture hybrid and electric vehicles in the region, as they have rapidly gained ground, reaching 10% of the Mexican market share and doubling their sales in the last year.
“These brands face challenges in terms of customer satisfaction and perceived quality. JD Power studies indicate that consumers in Mexico value both value for money and after-sales experience, which represents a key opportunity for Chinese brands seeking to establish themselves in the country,” he said.
Gómez Gálvez added that this is happening in a context in which the generational change in consumer expectations demands more personalized shopping and service experiences.
Along these lines, Gómez Gálvez stressed that logistics and timely delivery are essential for the customer’s perception of quality.
“Transparency in vehicle tracking is something that consumers value highly. The ability to resolve logistics issues before they impact the customer experience will be essential for brands that want to be successful in the long term,” he said.
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