Mexico’s automotive sector experienced a significant boost as car production increased by 13.9% during the first six months of this year compared to the same period in 2022. This growth indicates a continued recovery for the country’s auto industry following the challenges posed by the pandemic.
The National Institute of Statistics and Geography (INEGI) reported that Mexico produced 1.9 million light vehicles between January and June, with light trucks accounting for 76.5% of the total output. The remaining vehicles consisted of cars.
In June alone, Mexico produced 331,707 light vehicles, marking a 16.3% year-on-year increase. Exports also rose by 20.46%, reaching 286,291 vehicles, while domestic sales increased by 25.66%, amounting to 113,553 vehicles.
These figures demonstrate the automotive industry’s robust recovery in Mexico, which had previously been hampered by global supply chain disruptions caused by the COVID-19 pandemic. In May, Mexico’s monthly sales of new light-duty vehicles reached 102,697 units, surpassing the pre-pandemic sales figures from May 2019.
The automotive industry holds immense importance for Mexico’s economy, contributing nearly 4% to the country’s GDP and 20.5% to its manufacturing GDP, as reported by the Mexican Association of the Automotive Industry.
After experiencing a contraction of over 20% in 2020 due to pandemic-related plant closures, followed by a 2% decline in 2021 due to semiconductor chip shortages, the sector made a strong comeback in 2022. With annual growth rates of 9.24% in production, 5.86% in exports, and 7.03% in sales, the industry is continuing to thrive in 2023.
During the first nine months of 2022, Mexico surpassed all other countries to become the leading automobile exporter to the United States for the first time in history, underscoring its significance as a major player in the global automotive market.
With reports from Forbes and El Universal