The global automotive industry is going through a particularly complex time. Not only is it about the low demand for products derived from the health crisis, but now its competition has diversified to such a degree that large companies with a much more technological turn have become its greatest competition.
The truth is that these two phenomena have placed one of the most important sectors for many economies in the world at a crossroads.
The importance of the automotive sector
Just look at what happens in the Mexican market. According to data from the National Institute of Statistics and Geography (Inegi), the automotive sector in Mexico is responsible for the year-on-year generation of 3.6 percent of the Gross Domestic Product (GDP).
With production at plants in the north of the country close to 3,900 units per year, the country ranks as the sixth largest producer of automobiles in the world, just below Germany and above South Korea.
Thanks to the operations of brands such as Hyundai Motor Company, Toyota Motor Corporation, Bayerische Motoren Werke AG (BMW), Mazda Motor Corporation, Fiat Chrysler Automobiles, Honda Motor Co. Ltd, Audi AG, Ford Motor Company, Volkswagen Aktiengesellschaft, General Motors Company and Nissan Motor Company, Limited, the 43 plants located in the country generate about 530 thousand direct and indirect jobs.
Tesla, the most valuable company
The truth is that to get out of the problem that firms like Volkswagen now face, there is no other way but to recognize the new terrain and this contemplates having not only in their sights, but projecting the potential that the new competitors have in the market.
This path is the one that the German automaker could be taking, which, in the voice of its CEO, Herbert Diess, has recognized that Tesla could become the best valued company worldwide.
By means of a note published on LinkedIn, the CEO of Volkswagen assured that “Elon Musk delivers results that many did not think possible. They show that electric cars can be profitable. As one of the few automakers, Tesla will go through the coronavirus crisis without a quarter of losses. That confirms to me that in five or ten years, the most valuable company in the world will be a mobility company. Tesla can be, as well as Apple or Volkswagen AG ”.
The executive echoed the financial results achieved by Tesla during the second quarter of the year, where income from $ 6 billion and earnings for $ 104 million. The numbers are especially significant if we consider the economic moment that the entire world is going through.
Diess’s prediction is no less and confirms that Tesla has become the rival to beat in the field of electric cars.
It is impossible to know if this forecast will become a reality; however, it is clear that Tesla is now the world’s largest automaker. The milestone was reached on July 1 by exceeding the value of Toyota.
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