In the pothole! Car production and exports remain below pre-pandemic level – El Financiero

In July 259 thousand 994 vehicles were produced in Mexico, 12.7% below pre-pandemic levels, in 2019, when 297,921 cars were assembled in the same month; while the export amounted to 210 thousand 170 units, 24% less than the cars sent abroad in the same month of 2019, before Covid.

In its annual comparison, the armed and the unit shipment increased by 10 and 4 percent annual, compared to the seventh month of 2021, according to INEGI data. Even comparing the figures with 2020, when the coronavirus arrived in the country and paralyzed the auto industry for a few months, the production of new cars is 13.8% lower than the 301,815 cars produced in the seventh month of This year.

According to specialists, the main problems What in the face of shipowners such as Nissan, Honda, Mazda, BMW, Mercedes Benz or Toyota, is the lack of semiconductorssupply chain disruptions and technical shutdowns at some plants, limiting the supply of new vehicles to distribution agencies in Mexico.

Added to this is the pressure to war between russia and ukraineand recently the tensions between China, the United States and Taiwanwhich is the largest producer of semiconductors in the world, which creates uncertainty for the recovery of the industry.

Gerardo Gómez, general manager of the consulting firm JD Power, pointed out that it is not until 2021 that the loss of vehicle production due to the pandemic amounted to more than 9.7 million cars, of which Mexico accounted for 5%, and specified that 84% were due to the lack of semiconductors, while the rest was due to the COVID-19[feminine] and delays in the sector.

“What is planned is that they will stop producing 5 million units, yes we have cut production in half, today we have already increased our production rate, but we are still leaving possible doorstep sales because we can’t supply those 5 million units,” he said. said, which could affect more than half of production in Mexico by the end of the year.

On the other hand, the conflict between China and Taiwan, a region which concentrates more than half of the manufacturing worldwide semiconductorwhich could have an impact on the recovery of the industry, expected for the end of 2023 and the beginning of 2024, as pointed out by Guillermo Rosales, president of the Mexican Association of Automobile Distributors (AMDA).

manufacturers advance

In Mexico, 259,000,994 new light cars were produced in July this year, a variation of 10.46% more compared to the same month of 2021, despite the lack of semiconductors and interruptions in the supply chain. ‘supply.

Among AMDA-affiliated brands, Volkswagen, KIA, General Motors, Ford, Stellantis and Mazda stood out with production growth of 103, 35, 27, 25, 12 and 9%, respectively, in the seventh month of the year.

On the other hand, those who less product were BMW with a drop of 99% to only 65 units assembled, followed by the Nissan assembly plant with a drop of 39.5% to 23 thousand 509 cars produced and Mercedes Benz with a reduction of 31%.

From January to July 2022, 1 million 921 thousand 338 new cars were manufactured, which represents a variation of 4.7% compared to the same total in 2021.

“We do not yet have a clear growth trend or we are already with a vision of a continuous increase in production, we can observe that month by month we have had production below last year’s figures and a month above, so it is not always a certain trend that we are already at the top, ”commented Fausto Cuevas, director general of the Mexican Association of the Automotive Industry (AMIA).

Exports increase by 4%

On the other hand, the export of light vehicles in July, it increased by 4% to 210,000,170 units, which is 8,000,149 cars more than in the same month of 2021, while in the cumulative from January to July 1 million 614,000,765 cars were sent to abroad, an increase of 0.5% against 1 million 606 thousand 658 cars exported in the same period last year.

Volkswagen, Ford, GM, KIA and Mercedes Benz also led the growthwhile Nissan, Honda and Mazda recorded the largest declines in exports in the seventh month of the year with 53%, 37% and 21% respectively year-on-year.

Versus pre-pandemic levelsthe overseas shipping vehicles last month is still well below 2019, down 24% from the 276,818 units exported that year.

It should be noted that Mexico’s largest market continues to be the United States, while the neighboring country to the north is experiencing uncertainty due to a possible economic recession that could drag down the automotive industry in our country.

According to the AMIA, only in the first half of the year, the American Union accounted for 78.4% of the share of light vehicle exports, followed by Canada with 7.2%, Germany with 5, 5% and Colombia with 0.9%. of Mexican light cars in the US domestic market represents more than 16%.


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