Car sales in Mexico experienced significant growth in July, showing a remarkable 32.6% increase compared to the same month last year. The surge in sales indicates the ongoing recovery of Mexico’s automotive industry from the impact of the COVID-19 pandemic.
The latest report from the National Institute of Statistics and Geography (INEGI) reveals that 110,843 new vehicles were sold in Mexico during July, compared to 83,588 units sold in July 2022. This substantial rise in sales marks a positive trend in the country’s automotive market.
Furthermore, the July figures not only surpassed last year’s performance but also exceeded pre-pandemic levels by 4.4%. In July 2019, 106,104 new vehicles were sold, making this year’s sales even more impressive.
While this growth is encouraging, it’s important to note that July’s sales figures still fall short of those recorded in March, which remains the best-performing month of this year so far with 118,801 units sold.
The rebound in car sales can be attributed to the gradual recovery of the automotive industry from the pandemic’s most severe impacts. During the height of the pandemic, the industry faced significant challenges, particularly with supply chain disruptions, including a shortage of semiconductors. These challenges caused car manufacturers to cancel or delay orders, hindering sales in 2020.
In comparison to previous years, the automotive market experienced a notable decline in 2020, with less than 1 million cars sold in Mexico – a sharp 28% drop from 2019. This figure represented the lowest number of car sales since 2010, when 820,413 cars were sold.
Thankfully, there has been a steady recovery in subsequent years. In 2021, car sales in Mexico surpassed the one-million mark, although barely, with just 1.01 million units sold. The following year, 2022, saw a further increase with 1.09 million cars sold. The highest sales recorded since 2010 occurred in 2016 when over 1.6 million units were sold.
Looking ahead to 2023, the automotive market continues to show promise. From January to July, Mexico has already sold 743,930 new units, indicating a substantial 23.6% increase compared to the same period in 2022. This positive trend suggests that the automotive industry in Mexico is steadily regaining its momentum.
