Monday, June 24, 2024

Car sales in Mexico up 32.6% in July compared to last year

More cars were sold in July this year compared to the same month of 2022, as Mexico’s  automotive industry continues to recover from the COVID-19 pandemic. 

According to a report by the National Institute of Statistics and Geography (INEGI) 110,843 new units were sold in Mexico during July, compared to 83,588 units sold in the same month of 2022. This represents an increase of 32.6% from last year’s figure. 

Cars in mexico
More than 110,000 new cars were sold in July this year. (Photo: Cuartoscuro)

July’s sales also exceeded pre-pandemic levels by 4.4%, when 106,104 new units were sold in the same month of 2019. 

However, July’s numbers are still below those registered in March, which saw 118,801 units sold, making it this year’s best month for car sales so far.

Rising car sales may be due to the recovery of the industry itself following the height of the pandemic. 

According to a Citigroup-sponsored report by The Economist Intelligence Unit, the car industry was one of the manufacturing sectors hardest hit by the pandemic. Supply chain disruptions — in particular the semiconductor shortage  — caused carmakers to “cancel or delay orders early in the pandemic.”

Automotive manufacturing is one of the industries benefiting from nearshoring, as manufacturers relocate operations closer to the U.S. market. The industry is a cornerstone of the Mexican economy. (Wikimedia Commons)

In 2020, according to INEGI data, less than 1 million cars were sold in Mexico — a 28% plunge from  2019 and the lowest figure since 2010, when 820,413 cars were sold. 

In 2021, cars sold in Mexico again surpassed 1 million — though barely, just 1.01 million units. In 2022, 1.09 million cars were sold. The highest year for sales on record (which began to be kept in 2010), was 2016, when more than 1.6 million units were sold. 

As for 2023, so far, 743,930 new units have been sold in Mexico from January to July, an increase of 23.6% over the same period in 2022. 

With reports from El Financiero and INEGI.

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