Indian investments in the Aztec country amount to US$4 billion, covering sectors such as information technology, pharmaceuticals and the automotive industry.
Faced with possible geopolitical disruptions, Mexico and India are working to strengthen supply chains in the automotive industry to transition towards electromobility and take advantage of the nearshoring phenomenon, reported Prasad Sitaram Shinde, economic and commercial charge at the Embassy of India. .
He highlighted that Indian investments in Mexico amount to US$4 billion, covering sectors such as information technology, pharmaceuticals and the automotive industry. But an investment of US$2 billion will soon be made in the auto parts industry in Nuevo León, he added.
“ Nearshoring is important. And taking into account that geopolitical factors can alter and affect foreign trade," India has decided to invest in Mexico to protect this situation, "we have to diversify, which is why Mexico is a hub for Indian investments, especially between three sectors. key Information, pharmaceutical and automotive technologies”.
When participating in the Nearshoring Talks 2024 Meeting of Coparmex Mexico City, under the topic “The opportunity of the automotive industry and Digital Financial Approach”, the diplomat said that the Indian company UPL announced an investment of US$ 11 million in a new project research at the Development Center and manufacturing plant in Saltillo, Mexico.
Tata Group under the name Titan Indian investments in Mexico until March 2024 are around US$4 billion, in addition to having more than 200 Indian companies with a presence in Mexico,” he said.
With this, Prasad Sitaram Shinde highlighted the growing collaboration between Mexico and India in the automotive sector, with a special emphasis on the transition towards electromobility.
"Both countries are implementing strategies to promote sustainability, including tax exemptions for electric vehicles and the development of infrastructure and batteries, with the goal of 30% of vehicles in 2030 being electric," he reported.
For the economic and commercial person in charge of the Indian Embassy, the relationship between India and Mexico is not only a competitive part, it is cooperation between both countries. “Mexico and India have a similar ecosystem. Just as Mexico is a benchmark in the Americas, India is a benchmark in Asia,” which is why work is being done to strengthen automotive supply chains.
For his part, Francisco González, president of the National Auto Parts Industry (INA), said that Mexico has received global companies because despite trade tensions, solid relations are maintained with countries such as Taiwan, India, Singapore and Japan, attracting investments. significant.
In North America, Mexico supplies 42% of the parts used in vehicles in the United States and Canada, generating approximately US$110 billion in foreign currency, growth that has driven greater demand for personnel, better salaries and working conditions, consolidating Mexico as a key economic engine in the region, explained the president of the INA.
He highlighted the importance of the energy transition and electromobility in the auto parts industry, as well as the need for clean energy for the production and charging of electric vehicles, crucial for the sustainability of the sector, where the vision is to create an ecosystem where the production of auto parts and vehicles is completely sustainable and technologically advanced.
“We cannot charge an electric car with combustion energy; “We require clean energy and equally clean production,” said Francisco González.
