After returning to the black in January, Mexico’s vehicle sales, production and exports fell in February. According to AMIA, contractions in assembly and exports were directly related to platforms changes. FCA Group, GM and Mazda reduced their vehicle output by 34.6 percent, 18.7 percent and 28.8 percent, respectively. INEGI data show sales dropped by 5.5 percent (6,019 vehicles).
Despite these grim monthly results, several OEMs have vowed to reinvest in the country and start or boost production. Scania plans to increase its investments in the country by 50 percent to boost sales by 40 percent, Bajaj will start assembling motorcycles in Toluca soon and there are positive expectations for BMW’s start of operations in San Luis Potosi and Toyota in Guanajuato. Sales of electric and hybrid vehicles in Mexico increased by 68.7 percent. The Mexican automotive industry is getting ready to resume free trade with Brazil on March 19.
Carlos Tavares, Executive Director of PSA Group, is looking for partnerships with global companies that give Peugeot, Opel and Citröen a greater global presence while Carlos Ghosn, former Chairman of Nissan and Renault, has been released on bail after over 100 days of detention in a Tokyo jail.
Rev your engine. This is the week in automotive!
New Investments, Solid Projections
Scania will increase its investments in Mexico by 50 percent. The company expects to add six new sales points and boost sales by 40 percent.
Bajaj Auto will start producing motorcycles in Mexico. The company’s assembly plant in Toluca has an installed capacity of 50,000 motorcycles per year and will start operations soon.
In 2018, Guanajuato’s FDI increased by 44 percent (US$2.3 billion), according to the Ministry of Economy.
Sales of electric and hybrid vehicles increased 68.7 percent in Mexico in 2018. Mexico City remains the most important market for green vehicles.
Mexico and Brazil are expected to return to free trade on vehicles, according to experts. Representatives of both governments have met to work on the agreement.
Weak Sales, Production and Exports in February
The Mexican automotive market contracted again in February. New vehicle sales fell 5.5 percent in the month.
In February, Mexico’s vehicle production and exports fell by 5 and 0.1 percent, respectively. According to AMIA, this was the result of production reductions by FCA Group, GM and Mazda.
Rise and Fall of Automotive Titans
After more than 100 days of detention in Tokyo, Carlos Ghosn, former Chairman of Renault and Nissan, has been released on bail.