Betting on Mexican Design, Manufacturing, and Assembly

Q: How crucial are post-sales support, spare parts availability, and maintenance services for fleets, and how does this help differentiate AYCO from its international competitors?

A: There are about 40,000 AYCO buses circulating in Mexico, which represents the daily mobility of about 18 million Mexicans. This carries an enormous responsibility. We honor this commitment through a robust support network. We have three spare parts distribution centers strategically located in the northern, western, and central regions of the country, to which we will soon add two new expansion points: one in the northwest, either in Sonora or in Baja California, and another in the Yucatan Peninsula. Additionally, we have a specialized team of over 25 professionals and eight vehicles dedicated to supply spare parts and provide technical assistance directly to fleets. All of this ensures maximum uptime for our customers’ operations.

Compared to international competitors, we offer unmatched response times and infrastructure to deliver spare parts straight to the point of use. A key differentiator is that we manufacture most of our spare parts, especially collision parts, by controlling their design, production, and distribution. Because we own the molds, we extend parts support for discontinued models far beyond the industry standard, which is typically 10 years. This allows us to produce spare parts for vehicles that are up to 15 years old. Furthermore, by manufacturing components for both spare parts and our daily assembly lines, we maintain superior supply flexibility and agility.

Q: What financial advantages does the flexibility provided by AYCO generate for customers in terms of total cost of ownership?

A: Total cost of ownership is one of the main pillars of our value proposition. We strive to provide our customers with a body solution that lasts way beyond the industry standards while keeping price points that fit their financial equations and business models.  Through our partnership with the most prestigious OEM chassis/powertrain manufacturers such as Mercedes-Benz, Volkswagen, International, Volvo, and Scania, our customers have maximum freedom to choose the combination that best suits their needs.    With nearly 45 years of experience, this model has enabled us to capture about 65% of the market share in bodywork produced domestically.

Our proposition rests on four main pillars. The first is offering a competitive initial price through economies of scale and high vertical integration. We manufacture most of the components we use:  from molds and fiberglass to windows and multiple internal components, passing those savings directly to the acquisition cost. The second is offering extended durability by designing high-strength bodywork. We have units in circulation with over 20 years of service in optimal operating conditions. The third is the high resale value, as an AYCO unit retains substantial value in the secondary market at the end of its first service life, facilitating financing for operators looking to renew their fleets. Finally, we optimize the availability and affordability of spare parts, guaranteeing accessible spare parts built to OEM quality standards and significantly reducing downtime due to maintenance.

Q: ANPACT has emphasized the urgent need to modernize Mexico’s vehicle fleet, pointing out the mounting risks associated with aging units. How is AYCO engaging with the association on this issue?

A: We fully align with ANPACT’s position and actively advocate for accelerating fleet renewal, particularly across the public transit sector.   This is paramount to keep up with the public service required and connect people with the possibility to further advance socially and economically.   Mexico has one the most antiquated vehicle parcs with over 20 years.  By comparison, the OECD average stands at 12 years, while regional peers like Brazil average 10 to 11 years, leaving Mexico near critical levels of fleet obsolescence.

Allowing vehicles to operate for over two decades, introduces three critical vulnerabilities. Outdated units lag up to three technological generations behind modern emissions standards, contributing significantly to urban pollution. Furthermore, uncertified structural repairs and makeshift modifications severely compromise passenger safety and overall transit quality. Lastly, these aging fleets require continuous, cost-prohibitive corrective maintenance that drains operator margins. Through our ongoing dialogue with ANPACT, AYCO remains committed to supporting policy initiatives and manufacturing scalable, long-lasting solutions that facilitate a viable transition toward modern, efficient and sustainable transit systems nationwide.

Q: AYCO holds accreditations such as the “Hecho en México” seal and various international homologations. How do these certifications support your market position?

A: At AYCO, we maintain a domestic integration level above 90% in all our product lines.  Beyond our high level of vertical integration and local labor, our process relies heavily on domestic suppliers with materials and components made in Mexico.   This is a profound commitment with the industrial development of our country. 

Regarding OEM certifications, we are homologated by all the brands mentioned before and recently obtained a Ford Official Licensee certification.  These accreditations endorse our engineering and production standards and provide our end customers with peace of mind in terms of safety, reliability and quality. 

Q: What are the key macrotrends guiding the design and development of AYCO’s new bodywork models?

A: We have identified several key macrotrends currently reshaping our industry. First, we are prioritizing weight reduction by developing lighter body structures that optimize fuel efficiency and extend range for clean technologies, all while maintaining uncompromising structural integrity and vehicle safety. Second, we are incorporating sustainable and high-durability materials engineered to resist environmental and aesthetic degradation, significantly extending each vehicle’s operational service life. 

Third, our designs focus on technological integration and ADAS, adapting bodywork architectures to seamlessly embed 360-degree camera systems, real-time monitoring, and ADAS that actively mitigate collision risks, amongst other technological elements that are now must haves for all types of vehicles. Fourth, to address global driver shortages, we emphasize ergonomics and operational inclusion by engineering adaptable driver stations that accommodate diverse body types and foster a more inclusive operating environment.

Q: How have you adapted your engineering and production processes in the context of sustainable mobility and the transition toward electrification or Euro 6 engines?

A: We maintain a firm commitment to sustainable mobility, without limiting our strategy solely to electrification, considering the reality of the country’s energy matrix. Adapting our bodywork to various energy sources, whether natural gas, hybrid, electric, or Euro 6 diesel, has required deep transformations. 

In materials engineering, we have focused on researching and applying high-strength steels and lightweight alloys, ensuring that all our bodywork holds international R66 rollover certification to guarantee maximum structural safety. Regarding battery handling and high voltage, we completely re-engineered our production workflows to accommodate the safe handling, insulation, and mounting of high-voltage battery packs, equipping our technical personnel with specialized tools and training. To address Euro 6 emissions systems, we adapted our chassis spatial design to integrate larger exhaust gas aftertreatment systems without compromising usable passenger capacity.

Demonstrating the success of these engineering advancements, our industrial group recently launched three new sustainable mobility solutions, comprising two fully electric models and one hybrid platform.

Q: Given that you offer more than 40 configurations and a high level of customization for clients, how do you balance this operational flexibility with automation and Industry 4.0 principles?

A: Extensive configurability is one of our strongest competitive differentiators, as we offer over 40 distinct specification options across our various models and variants. To manage this complexity while maintaining high efficiency, we implemented a modular production architecture that strategically balances advanced technology with skilled craftsmanship.

Through automation in key processes, our centers of excellence leverage high-precision robotics to manufacture standardized modular structures and subsystems that serve as the foundation across multiple product platforms. Client-specific customization is then seamlessly integrated and executed by our specialized workforce of nearly 1,000 skilled employees, with critical procedures like welding governed under rigorous quality controls established through our internal technical training school.

Q: What are AYCO’s three strategic priorities for the coming years?

A: Our long-term strategic vision centers on three fundamental pillars. First, we are committed to continuous innovation by engineering forward-looking products that directly address evolving market demands for operational efficiency, environmental sustainability, and digital connectivity. Second, we are deepening vertical integration across our operations, optimizing our internal value chain to deliver increasingly efficient, cost-competitive, and agile solutions to our partners. Finally, we remain dedicated to strengthening the domestic industry by expanding local manufacturing capacity, generating high-quality jobs, and actively developing a resilient domestic supplier ecosystem.

We are focusing on two milestones. First, the launch of two solutions in market segments where we do not currently participate. These are targeted for the first quarter of 2027 and will further enhance our position in the market providing end customers with more alternatives to their evolving needs.   Secondly, in 2027 we will amplify our vertical integration with additional components and solutions that will further improve our price competitiveness and delivery lead times.

We will achieve these milestones while continuing to defend the industry’s domestic manufacturing capacity. It is a priority to prevent the displacement of formal local employment caused by the accelerated import of fully assembled units that do not always operate under the same regulatory or national integration standards.  Preserving technical jobs and strengthening the domestic industrial framework will remain one of our primary commitments to our people and our country.