Faced with possible geopolitical disruptions, Mexico and India are working to strengthen supply chains in the automotive industry in order to move towards electromobility and take advantage of the phenomenon of the nearshoringPrasad Sitaram Shinde, economic and commercial officer of the Embassy of India, informed.

He pointed out that Indian investments in Mexico amount to US$ 4 billion, covering sectors such as information technology, pharmaceuticals and the automotive industry. But a US$ 2 billion investment will soon be made in the auto parts industry in Nuevo León, he added.



It´s important the nearshoring. 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, so Mexico is a hub for Indian investments, especially among three key sectors Information Technology, pharmaceutical and automotive’.

Participating in Coparmex Mexico City's Nearshoring Talks 2024, under the theme “The Opportunity of the Automotive Industry and Digital Financial Focus”, the diplomat mentioned that the Indian company UPL announced an investment of US$ 11 million in a new research project at the Development Center and manufacturing plant in Saltillo, Mexico.

Tata Group under the name Titan X inaugurated an automatic cooling parts manufacturing plant in Mexico in April 2024. In general, “India's investments in Mexico are much higher than the other way around. India's investments in Mexico until March 2024 is around US$ 4,000 million, in addition to having more than 200 Indian companies with a presence in Mexico,” he said.



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 encourage sustainability, including tax breaks for electric vehicles and the development of infrastructure and batteries, with the goal of 30% of vehicles by 2030 being electric,” he reported.

For the economic and commercial officer of the Indian Embassy, the relationship between India and Mexico is not only a competitive one, 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 we are working to strengthen the automotive supply chains.



For his part, Francisco González, president of the National Auto Parts Industry (INA), said that Mexico has welcomed global companies because despite trade tensions, strong relations are maintained with countries such as Taiwan, India, Singapore and Japan, attracting significant investments.

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 exchange, a growth that has driven a greater demand for personnel, better salaries and working conditions, consolidating Mexico as a key economic engine in the region, said the INA president.

He stressed 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 fully sustainable and technologically advanced.


“We cannot charge an electric car with combustion energy; we require clean energy and equally clean production,” said Francisco González.