The Mexican Automotive Industry Association (AMIA) reported that light vehicle production in Mexico increased by 17.7%; exports increased by 5%; and domestic sales increased by 17%, compared to the same month in 2022.
Odracir Barquera, general director of AMIA, indicated that in terms of production we are talking about 294,550 units in April, which means that the country is slightly above the 10-year average between 2013 and 2022, which was 240,000 units, being very close to the pre-pandemic level of 2019 production that had 303,954 units in the same month of April.
"In the aggregate of the first four months of 2023, we are above the average of the previous 10 years and we are also very close to the average of the first four months of 2019, which is the pre-pandemic benchmark. In terms of production for export, 78.8% of units were exported during April."
SUVs and pickups are the most produced units in the country, between January and April 2023, of the 922,177 units that have been produced, 711,412 correspond to these two segments, or 77.2 percent.
Regarding plant capacity utilized and units produced, there is good data. In 2019, Mexico was at 83% and in February 2023 it yielded 84.2%, if the trend continues, it will confirm that the country is above pre-pandemic numbers in terms of plant capacity utilization.
The AMIA also emphasized that, in terms of exports, the story is also positive, as 230,484 units were exported in April, slightly above the 10-year historical April average.
"When we look at the cumulative of the first four months of the year, we have 994,641 units exported, a significant rise from the 2013-2022 average and very close already also to the average of the first four months of 2019, a pre-pandemic year reference."
Of the 741,306 units exported between January-April, 611,842 correspond to SUVs and pick ups, i.e. 82.6% of these units confirm the trend of the segment of greatest consumer interest.
The United States, Canada and Germany are the main export destinations, accounting for 90% of the total. Chile continues to show a downward trend; Brazil has had a slight recovery, although it is still lower than in previous years. Colombia continues to show a growing trend as an export destination for Mexico. Saudi Arabia is experiencing considerable growth as a destination.
"In terms of vehicle sales in the United States, by country of origin, Mexico's position as the leading vehicle exporter continues to be reaffirmed. It ranks third in vehicles circulating in that country after the United States and Canada. This keeps us in important numbers above even Japan, which would be the fourth country".
The automotive industry in the GDP
Barquera highlighted the evolution: at the end of 2022 it remained at 3.6% of the total, a trend that has been reaffirmed and that they are looking for it to grow to reach pre-pandemic levels. Likewise, as for the participation in the manufacturing GDP, at the end of 2022 it was 18%, which showed an interesting growth during the last 11 years.
"This translates into important employment data, we have that, between the automotive terminal industry and the auto parts, body and trailer industry, 979,235 jobs were generated at the end of 2022, this means 22% of manufacturing employment. In addition to direct jobs, 3.6 million people will benefit indirectly.
He concluded by saying that "we have very positive indicators for the automotive industry; it is the industry par excellence in the North American region, but, above all, it is the most important economic industry in the country, and the numbers are telling us so. And thanks to the efforts that have been made, we are recovering to pre-pandemic levels.
Source: mexicoindustry.com
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