In continuation to the MOU signed between the Pakistan Auto Parts Association PAAPAM and INA the Mexican counterpart last month, I had the opportunity to visit the USA and MEXICO to further enhance and devise a road map for a future where both industries could gradually and steadily build a relation.
The AUTO INDUSTRY IN MEXICO has more than 1,100 Tier 1 automotive manufacturing companies that have invested in setting up rubber, plastic, sheet metal, stamping, assembly and auto manufacturing plants in Mexico, positioning the country as the largest supplier of auto parts to the United States and an automotive global export platform. This region is attractive to foreign car manufacturers due to its strategic advantages and trade agreements such as the USMCA (NAFTA), with companies expanding into Mexico every month.
My trip was planned after I was visiting the US and its auto sector, I had many introductory meetings with companies that represented robotics, data analysis, distributors, and automation. The Pakistan Embassy was highly involved in the MOU between the two associations and hence had set up sessions with our counterpart association, trade fair organizers, and aftermarket players.
My journey started with meeting with the Embassy located in Mexico City. I met with the Pakistani Ambassador to Mexico H.E. Dr Aman Rashid and his team including Ms. Shabana, who was a key player in introducing both associations. The team was briefed by me on the potential of the Pakistani industries and how it can integrate with the Mexican Industry. His Excellency and the Trade Wing had some ideas as well. I was very pleased to see the level of hard work put in by the trade wing.
Later in my trip I met with the President Mr. Miguel & Director Mr. Alehendro Carranza of ANPACT which is the National Association of Producers of Buses, Trucks and Tractors in the country. He verified areas that were of high demand in the industry, and areas Pakistani Part Manufacturers can be competitive in aftermarket. I requested them to provide further data for our SMEs to better understand the market. Information such as 1. Key models in Trucks and buses, List of parts that are of high use and imported, List of distributors that we can target while sitting in Pakistan etc.
Lastly, I met with the President of INA Industrial National De Auto Parts Mr. Oscar Albin, who was a gentleman and showed great admiration for the Pakistani Auto Engineering industry. He said that he looked forward to materializing the MOU signed with the association PAAPAM and expects fruitful results.
Mr. Oscar Albin, who was the President for one of the largest trade fairs held in the region called INA – Automechanika Mexico scheduled to be held in July 2022. We discussed areas of mutual cooperation. I verified that we can bring a large-scale delegation of visitors and maybe some exhibitors to be part of the expo but we would like to special treatment in the form of pre B2B meetings and planned visits to plants and aftermarkets. I verified that we can provide the same services of you bring a delegation to Pakistan Auto Show scheduled every year. The President was highly appreciative and said that he would look into this.
To my surprise I found out that Mexico also uses its automobile beyond its life. Imports of used buses from USA is set to increase in the coming years. Parts are mostly imported from India, China and other developing nations. I have requested a detailed market access report. I think we have a potential in Mexico, I request my fellow members with in house export desks to start researching on Mexican Bus and truck industry.
Mashood Khan is Director Export/ Mehran Commercial Enterprises