Dec 202012
 

The Great Recession related to US housing and banking failures in 2009 hit the Mexican vehicle industry very hard. Production in Mexico declined by 28% from 2.10 million units 2008 to 1.51 million units in 2009. This dropped Mexico to 10th in the world. However, production shot up 50% in 2010 to 2.26 million and grew to 2.56 million in 2011 (data from Mexican Automotive Industry Assn.) It is expected to hit 3.1million in 2012. This enabled Mexico to move past Spain and France into 8th place.

Virtually all of this growth has been in the export sector. In 2011, almost 84% of all vehicles made in Mexico were exported. In fact, sales of Mexican made new cars in Mexico dropped from 1.1 million in 2007 to 0.76 million in 2009. It only rebounded to 0.82 million in 2011. It is expected to increase 11% in 2012 to 1.0 million, still lower than the 2007 level.

In 2011, almost 84% of all vehicles made in Mexico were exported. This export percentage clearly suggests that these manufacturers are primarily focused on selling their Mexican made vehicles in the USA and Canada.

Production is expected to continue increasing rapidly in the years ahead as evidenced by the following recent news releases:

Source of data:

Mexican Automotive Industry Assn. “Mexico’s Automotive Production & Exports Hits Record High in November (2012)”  (pdf file)

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