Telemetry Increasingly Becomes an Indispensable Element

Q: What fundamental problem does SAAG Automotive solve in the Mexican market?

A: We represent three brands in Mexico. The first is Bestune, which serves executive and family segments with passenger vehicles. With JMC and Jim, we offer a comprehensive lineup covering passenger vehicles, commercial vehicles, and light-duty trucks. These latter two brands are focused on revenue generation for our clients, as they are units designed to optimize productivity and generate profits for their businesses.

The largest growth opportunity lies within the JMC brand. Over the past five years in the passenger vehicle segment, JMC pickups have grown from representing 12% to 16% of the total market. This is not linear growth, but exponential. On the other hand, in the light-duty truck sector, we foresee a gradual migration in Mexico: since tractor-trailers are not always filled to maximum cargo capacity, the market will tend to optimize logistics using lighter units. In that segment, we offer a competitive portfolio across three versions ranging from 2.5t to 5t of payload capacity.

Q: What investments have you made in dealerships, spare parts availability, warranties, and after-sales support to build long-term trust?

A: Our first major investment aimed to provide after-sales support: we have a spare parts distribution center in Guadalajara, alongside our corporate offices located in the same city. The most important business partner for an automaker is its dealer. We have heavily invested in that relationship, reaching 60% national territory coverage in just three years. In such a competitive environment with the constant arrival of new brands, consolidating that trust is no easy task. This structure only works thanks to our human talent, composed of professionals with extensive track records in the automotive sector. This combination of an experienced team, a consolidated dealer network, and the capital backing of our holding company constitutes our strategic formula.

Q: What is your main differentiator in terms of local infrastructure and financial plans?

A: Our primary point of differentiation lies in our financial backing. We belong to an importing group with substantial capital strength, to the extent of having our own captive finance company operating exclusively for our network: it handles both dealer wholesale and retail financing for end customers. The second major differentiator is the breadth of our portfolio. With three brands, we cover virtually every segment of the automotive sector: from sedans, crossovers, and executive or family SUVs, to pickups, passenger vans, and light-duty trucks. Since there is no self-cannibalization among our own products, we achieve optimal diversification to address different market needs.

We import units from China under the Completely Built Up (CBU) model. However, tariffs on vehicles originating from China have increased from 20% to 50%. In response, we are absorbing and subsidizing this tariff burden jointly with the OEM, ensuring that operations remain efficient without impacting the final value for our dealers and customers. The industry will likely migrate toward local assembly under SKD or CKD schemes, but it is not a simple process because the local supply chain for these schemes is still evolving in the country. We already have several local commercial partners for supply localization, but this process will naturally scale exponentially once the assembly project in the country comes to fruition.

Q: Regarding electrification and clean mobility, what is SAAG’s roadmap for the different brands you represent?

A: All three brands we represent have a portfolio of new energy vehicles, including plug-in hybrid (PHEV) and 100% electric technologies. However, in Mexico, we are moving cautiously. We believe that the adoption of these technologies in the country is still in an early growth stage, and we want to pace ourselves with the national infrastructure. We have full OEM backing and immediate product availability; the moment market conditions and demand in Mexico require it, the transition for us will be extremely agile.

Q: What are the main barriers limiting customers from taking the definitive leap toward electromobility in Mexico?

A: It is a combination of several factors. On one side are the acquisition cost of the units and financing conditions; on the other, public charging infrastructure and intercity connectivity options. There is still a way to go regarding government incentives, charging networks, and specialized financing for the market to reach full maturity in this area.

Q: Digitalization and AI are gaining weight in the industry. How are you applying these tools to inventory management, demand forecasting, and daily operations?

A: We belong to a holding group where AI adoption is a core philosophical pillar and a central operational differentiator. In our daily work, department heads use AI licenses to accelerate data analysis and decision-making. For example, when submitting monthly order planning to the OEM, we process initial inventory data, units in transit, sales history, and dealer stock projections through AI models. This gives us precise diagnostics in record time. Likewise, we employ these tools to structure the strategic planning of our dealerships, identifying goals, required investments, and specific action plans for their growth.

By delegating the operational workload and hard data processing to AI, we free our human talent from repetitive tasks. This allows the team to focus their energy, time, and analytical capacity on strategic decision-making and high-value customer service. Technology does not replace the human factor; it gives it the space needed to execute more sophisticated business strategies.

Q: What AI-driven or autonomous driving features do your vehicles sold in Mexico incorporate?

A: The OEM has integrated significant advances. For example, in the Bestune brand, we offer models with autonomous driving assistants that include automated parking systems, a feature uncommon in its segment within the Mexican market. As the country’s road infrastructure evolves in terms of signage and connectivity, users will be able to take full advantage of the advanced telemetry and active assistance systems already built into our vehicles.

Q: What factors need to align at the national level to fully leverage these assisted and connected driving technologies?

A: Alignment is required between automotive brands and public infrastructure policies. Automakers are bringing a steady volume of advanced technology to growing markets like Mexico. If there is consistency among government regulations, road development, and industry investments, the fleet’s digital leap will be far more orderly and accelerated.

Q: How relevant is telemetry and data integration for JMC’s commercial transport and freight operations?

A: In the passenger vans and light-duty truck segments, telemetry is an indispensable element. Since these units are dedicated to revenue generation, Total Cost of Ownership (TCO) is the key metric for the customer. Our units integrate factory connectivity and telemetry so that fleet managers can monitor operational performance and return on investment in real time.

TCO is also an important consideration in passenger vehicles. Although a sedan or SUV buyer does not formally calculate a TCO the way a transport company does, the modern customer is extremely well-informed. Before setting foot in a dealership, the user has already researched and compared options online. In a market with so much choice, customers look to maximize value for their money, demanding vehicles equipped with the best technology, connectivity, and safety possible within their budget.

Q: Looking ahead to the short-mid term, what are the top three non-negotiable strategic priorities for company management?

A: First, ensuring the profitability of our dealer network in a highly competitive environment. Second, guaranteeing the comprehensive satisfaction of customer needs through product and after-sales service. And third, fulfilling the commitments set by our shareholders in terms of growth, asset protection, return on investment, and corporate social responsibility. Operational success lies in maintaining a healthy balance among these three pillars.

The primary threats stem from external and unforeseen regulatory or governmental factors, such as adjustments to tariff policies or trade restrictions. Faced with these types of variables, the key lies in diversifying operations and protecting the three core stakeholders of the business: dealers, customers, and shareholders.

Our main priority is for our dealer network to reach and exceed its budgeted profitability targets set at the start of the cycle, positioning itself as an industry benchmark. Likewise, we will focus on consolidating sustainable market share growth, ensuring that every point of volume gained is accompanied by solid financial returns for investors and high levels of customer satisfaction.