Mexican light vehicle production approaches three million units
Exports to Brazil and Argentina to drop as the country reaches tariff-free export quotas
Mexican production volume of light vehicles reached a record high of 2.88 million units and the export of 2.36 million units also renewed its record in 2012. The production also hit a record high of 1.49 million units in the January-June 2013 period, up 5.1% year-on-year. As several OEMs plan to build new plants, production is expected to expand even larger. (Please refer to the chart.)
This surge in production is in response to continued robust sales. In 2012, 987,000 light vehicles were sold in Mexico, up 9.0% y/y. LMC Automotive forecasts that light vehicle sales in Mexico in 2013 will increase by 8.5 % to 1.07 million units. The Mexican sales are projected to continue to expand to 1.26 million by 2016. The global research company said "[this] is the first time it has exceeded the 1 million thresholds since 2008. Possible risks remain form the lingering European debt crisis and any stalling in the US recovery (ongoing budgetary gridlock). Sales are expected to return to the pre-global crisis level of nearly 1.13 million units (a 6.6% improvement) next year."
Nissan mulls new plant in North America by 2017 (Jul. 2013)
US Market: Continued growth spurs investment (Jun. 2013)
Japanese suppliers expand production in Mexico and Brazil (Jun. 2013)