Mexican light vehicle production approaches three million units

Exports to Brazil and Argentina to drop as the country reaches tariff-free export quotas

2013/08/08

Summary
Jan.-Jun. 2013 light vehicle production posted record high of 1.49 million units
Major OEMs' light vehicle production facilities in Mexico
Three U.S. OEMs: GM, Ford and Fiat-Chrysler
European OEMs: Audi will manufacture Q5 from 2016 at first plant in North America
Japanese OEMs: Nissan, Honda and Mazda are building new plants in Mexico
Amount of duty-free vehicle exports to Brazil and Argentina restricted up to March 2015
Production Forecast by LMC Automotive: Mexican production forecast by OEM Brand

Summary

Mexican light vehicle production forecast (LMC Automotive) 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."

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