The biggest drop in Mexican auto sales

Published:

On: Jan 2020

According to the report published by the national statistics institute Inegi, the light vehicle sales of Mexico declined to a 5-year low in the previous year, after collapsing 7.7 % as compared to 2018. In the year 2019, the Mexican industry auctioned nearly 1,317,727 units inspected to almost 1,426,926 units last year. Based on the report, the outcome is unfavorable since 2014, when 1,136,965 units were auctioned.

In December 2019, the auto sales fell to 8.3 % compared to the similar month the year before, along with nearly, 130,448 units sold. The figure came from almost 21 firms united with the automotive industry association of Mexico, Mitsubishi motors and Giant Motors Latin America. The general managing director at the Mexican Association of Automobile Distributors (AMDA), Guillermo Rosales, said that the month of December remarked as the 31st month in a row of dropping sales, approving that the local industry is experiencing a threat.

Rosales added that the forecast for this year continues to be non-satisfactory, evaluating the total number of brand new vehicles auctioned in Mexico could drop close to 2 % during the year. However, automobile distributors sales will be expected to hit bottom in 2020, generating the way to a phase of stability, even though not discovering a quick recovery to the demand levels that observed between 2014-2016.

The sales of a new vehicle in Mexico reached a figure of 1,607,165 units in 2016. The experts are warning the government to take steps to save the automobile sector by remodeling public transport and helping micro, as well as small firms, expand or improve their fleets with an essential financing plan along with the association of established banks and fiscal institutions. The 2nd-largest economy of Latin America sustained a technical recession in the 1st half of the previous year and declined in the Q3.