El Mexican automotive market has undergone a transformation, shifting from primarily relying on locally assembled vehicles to a growing presence of imported units. Recent data from consulting firm Urban Science indicates that approximately 66% of vehicles sold in Mexico are now imported,, marking a significant change from the balance observed in 2016, when the figures stood at 55% and 45%, respectively.

According to Guillermo Rosales, president of the Mexican Association of Automotive Distributors (AMDA), this change is strongly influenced by the trade agreements that Mexico has with other countries, which facilitate the exchange of vehicles without tariffs, thus encouraging local production aimed at export.

“Vehicles produced in Mexico are not only destined for the North American market but also find demand in other regions of the world,” explains Rosales. This strategy has allowed manufacturers in the country to more competitively integrate into markets with similar purchasing power, such as those in North America, India, and Brazil.

In the first six months of the year, automotive production in Mexico reached approximately 1.9 million vehicles, marking a year-on-year increase of 5.2%. This growth is primarily driven by exports, which have increased by 10.6% in the same period, with the United States being the main destination, accounting for 80% of total exports.

As automakers operating in the country continue to adapt to a globalized environment, the strategy of importing complementary vehicles has solidified as a common practice. However, the strategy followed by each brand differs.

Companies like Nissan have consolidated their presence in Mexico with locally assembled models like the Versa and the NP300, although approximately 70% of their total production is destined for export. From January to June of this year, Nissan assembled 340,358 vehicles in Mexico, of which approximately 238,423 units were exported, according to Inegi data.

In contrast, General Motors (GM) has opted to import 70% of the units it sells in the country from China, taking advantage of lower manufacturing costs in the Asian market.

“For example, General Motors, which is the leading exporter to the United States, generates credits from that export, allowing it to import products from China, Korea, and India without tariffs, benefiting from its credit accumulation,” says Eric Ramírez, director of Urban Science for Latin America.

In the first half of the year, GM produced 431,764 units, of which 401,038 units, or approximately 90%, were destined for external markets, according to Inegi data.


Source: https://expansion.mx/empresas/2024/07/17/autos-importados-rebasan-a-los-hechos-en-mexico