With a 16.8% growth rate between January and May, 2016 seems to be a promising year for the domestic automotive market. Meanwhile, production keeps its downward tendency, despite the entrance of Mexico’s most recent player.
One month before the end of 2016’s first semester, sales numbers keep going up in the Mexican market. Only in May, total sales raised to a total of 121,587 vehicles, representing a 19.2% increase compared to the figures seen in May 2015. The big winners this month were Hyundai, with a 52.1% growth rate, Kia with 4,610 sold units, and Renault with a surprising 129.9% increase. From January to May, the industry reported a 16.8% growth, with Hyundai once again leading the charge with a 60.4% increase and Kia with an accumulated 18,280 vehicles. However, the biggest sellers in the market were Nissan with 147,453 units, GM with 105, 417, and Volkswagen with 80,907 vehicles.
The Nissan Versa remains as the undisputable leader of the market with 32,409 units sold throughout the year, followed by the Volkswagen Vento with 24,231 vehicles. In the SUV and the light truck segment, Nissan is the sole front-runner with the Chasis Largo and the X-Trail. The only downside is in the imported used car segment, although there are signs of progress as the increase between 2015 and 2016 has reduced to 17.1%, mostly fueled by the operations in the border region of the country.
Production, however, keeps dropping steadily with only 279,508 vehicles manufactured in May. Once again, there is a negative trend compared to 2015, with a 3.1% decrease sustained by slowing production operations from most OEMs in the country. Only Honda and Toyota registered positive figures in May, with 62.3% and 36.6% rates respectively. Kia has now become part of the Mexican manufacturing landscape, but it is still at its initial stages of production with only 4,571 units. Overall, the industry has delivered 1,354,848 vehicles between January and May 2016, representing a 4.6% decrease compared to 2015.
This has also reflected in the exporting numbers reported in May. With 226,240 units, the industry has seen a 6% reduction against 2015’s figures. From January to May, only Honda, Nissan, and Toyota have seen actual increase in their exports, but not enough to counter the 7.1% decrease compared to 2015.
Although the domestic market shows promising signs of growth, the continuous development of the Mexican automotive industry is vital for the Mexican economy. Fortunately, Kia still needs its production to ramp-up and Audi will soon start its own manufacturing, so all hopes are up.
The data used for this article was sourced from AMIA.