Contributed by Mauricio Kuri, CEO of United Way México and Lecturer at ITESM, previously PR Director at GM.
Homogenizing Auto Brand Sales Data in Mexico
For many years, Mexico’s automotive industry maintained a close-run race with the consumer market. The 1965 decree offered OEMs with assembly operations in Mexico the privilege of being able to import vehicles, as a percentage of total production. This strengthened the presence of five main automotive companies:
- General Motors
These companies are known today as the “Big Five.” But some are losing their stronghold on the market and newly entering companies are gathering momentum. This began following the market opening starting in 1986, with the entrance to the General Agreement on Tariffs and Trade (GATT), now known as the World Trade Organization (WTO). The effect of swinging this trade-door open accelerated Mexico’s joining the North American Free Trade Agreement (NAFTA) in 1994.
What is certain is that the sales reports by local industry and its distributors contain striking inconsistencies compared to how international analysts describe automotive company information.
To be clear, some companies in Mexico including GM and Chrysler, report all their brands as one entity. GM announces sales of Chevrolet, Buick and Cadillac altogether, and Chrysler counts its Jeep, Dodge and Chrysler sales as one. Volkswagen, on the other hand, does not consolidate SEAT, Audi and Porsche, neither does Nissan report together with Renault nor Kia with Hyundai.
The following ranking shows the data gathered in Mexico of cars and light commercial vehicles and the results are surprising.
The data below was presented at the end of February 2017 by the Mexican Association of Automobile Distributors (AMDA).
Each month this is the graph the automotive industry presents us with but if we consolidate the specific information for Mexico in the same way analysts do around the world, the correct results would be as below:
If we compare like with like, Volkswagen Group would be the second largest company in Mexican sales, and Hyundai-Kia the fourth, above FCA. Analyzing the top 10 conglomerates puts Mazda in ninth place and Suzuki at number 10 with just 1.1 percent market share.
Toyota and Honda are very close to reaching FCA’s market share in a year that started very well for them, following the incorporation of volume vehicles to their portfolios.
Ford still is not including Lincoln sales in its consolidated January to February 2017 numbers but successfully reached seventh position. It is worth mentioning that Ford fought for third place for many years with Volkswagen but since 2008, the company has raised prices and quality of their vehicles. This caused them to lose sales volume in Mexico.