Mexico car industry: Q1 2012 sales calls for over 1 million sales.

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The automotive sector is really important for the Mexican economy representing the opportunity for carmakers to take advantage from high educated low cost manpower to produce vehicles for a growing domestic market and for exports.

Exports is traditionally focused over USA and Canada thanks to the Nafta trading agreement. However in last years, vehicle’s export was also directed to the entire growing Centre America and Caribbean area and, thanks to new agreements with Mercosur countries, to the South America.

The results of this large industrial program was a national car production surged at 2.7 millions in 2011, positioning Mexico as the world’s 8th automotive manufacturers, with a ratio between production and domestic market of 3.0, 2nd among Top 30 automotive global countries only to South Korea (3.06), but achieved without any domestic Brand.

Hit by global financial crisis, domestic market and production declines sharply in 2009. However crisis was a great opportunity for this country. The sharp US country declined forced a restructuring of North American automotive operations and the closing of several US plants has been followed by the delocalization of production in Mexico. Now that the entire American continent is growing, Car Manufacturers are planning to invest in new plants and Mexico and Brazil are the country having major benefit.

In these days, Audi announced the plan to invest in Mexico in a new plant for SUV products, base for a planned sales escalation in US luxury segment sales.

The production further increased during the first quarter with a significant +11.3% and was well supported by export volumes that improved by 15.3%. This is reflecting the performance of North American industries, able to absorbe almost two thirds of the Mexican exported volumes.

Focusing on recent domestic market performance, March was the 24th consecutive growing month year on year. With 83.574 sales posted again a double digit performance at 11.2% from last year and 27.8% from March 2010.

All segments were growing, but volumes were propelled mainly by the demand of sub-compact car segment grew from 62.417 to 77.994 in Q1 2012, up 25% from last year.

Thanks to an inflation index under control (in 2011 3.5%, down 0.7 points from 2010) and declining interest rate (Bank Commercial prime lending rate at 5%), the Bank liquidity is growing and the accessibility for car loans in expanding to a lower income level people. This trend will fuel new vehicles purchase for next months and allow forecasting a stable growing market trend.

As reported by focus2move.com, Mexican market is high concentrated with 58% of the market in the Top 3 Brands hands. Nissan is leading having further consolidated its position during the last quarter, with a share at 26.1%, 1.4 up on full year 2011. The second place is hold by Chevrolet, with a share stable at 18.6%. Volkswagen follows at 13.4%, having lost 0.6 points of share.

For the other following the only big news is Chrysler overtaking Ford in 4th position and the good progress of Honda’s share of market. In the table below, the Top 20 Brands ranking:

 

 

Jan ’12

Feb ’12

Mar ’12

I Qtr. 2012

Share

Rank

Total

75.287

74.703

83.574

233.564

I Qtr. 2012

2011

1

Nissan

18.501

19.901

22.650

61.052

26,1%

24,8%

2

Chevrolet

13.940

14.051

15.536

43.527

18,6%

18,6%

3

Volkswagen

9.850

10.206

11.161

31.217

13,4%

14,0%

4

Chrysler

6.214

6.446

7.408

20.068

8,6%

9,1%

5

Ford

6.627

5.399

6.434

18.460

7,9%

9,5%

6

Honda

4.545

4.307

4.139

12.991

5,6%

3,8%

7

Toyota

4.159

4.016

4.751

12.926

5,5%

5,4%

8

Mazda

2.579

2.210

2.093

6.882

2,9%

3,3%

9

Seat

1.791

1.626

1.712

5.129

2,2%

2,0%

10

Renault

1.516

1.254

1.702

4.472

1,9%

2,6%

11

Suzuki

1.075

801

826

2.702

1,2%

1,0%

12

Mitsubishi

782

731

921

2.434

1,0%

1,2%

13

Mercedes

675

772

817

2.264

1,0%

0,9%

14

BMW

551

618

620

1.789

0,8%

0,7%

15

Audi

574

486

696

1.756

0,8%

0,9%

16

Peugeot

376

483

445

1.304

0,6%

0,6%

17

Fiat

520

238

395

1.153

0,5%

0,3%

18

Mini

308

320

300

928

0,4%

0,3%

19

Lincoln

146

136

161

443

0,2%

0,2%

20

Acura

136

138

111

385

0,2%

0,2%

Focusing on the best selling models specifically in March, Chevrolet Aveo is now firmly market leader, Nissan is able to place 5 models in the top 10. In the table below, the Top 10 models in March 2012:

Rank

Model

Mar 2012

1

Chevrolet Aveo

4,815

2

Nissan Versa

4,172

3

Nissan Tsuru

3,942

4

Nissan Tiida

3,440

5

VW Clasico

3,342

6

Chevrolet Spark

2,640

7

Nissan March

2,430

8

Nissan Chassis Largo

2,135

9

VW Jetta

2,090

10

Honda CR-V

2,056

 

If you would like to download the attached charts, you can find:

1. Mexico car production (2001-2011)

2. Mexico car production mix 2011

3. Mexico car industry by month 2010-2012e

4. Mexico car industry trend since January 2011

 

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Would you need our help, data or a consulting over this country or subject, please mail at info@focus2move.com.

 

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