Auto production in Mexico increases by 5.24 % in the first half of 2024

MEXICO - Automobile production in Mexican plants rose by 5.24 % year-on-year in the first half of 2024 to 1,996,136 units, thus resuming the upward trend after a first quarter of stagnation, the National Institute of Statistics and Geography (Inegi) reported.

According to the report, exports of light vehicles increased by 10.67% to 1,721,852, while sales in the domestic market rose by 11.94% to 708,650, according to the report.

Inegi specified that 75.5% of the vehicles produced were light trucks and the rest automobiles.

The release highlighted a 27.5 % year-on-year plunge in production at Audi (F:NSUG), whose plant in the state of Puebla was on strike from January 24 to February 18 over a disagreement between unions and employers over a wage increase for 2024.

There were also year-on-year reductions in production at the Toyota (TYO:7203) (22.9 %), Stellantis (13.5 %) and KIA (3.9 %) plants.

In June alone, light vehicle manufacturing in Mexico advanced 3.77 % year-on-year to 344,206 units.

Meanwhile, exports in the sixth month of the year rose by 3.3% to 295,742 vehicles, and domestic sales increased by 8.26% to 122,929.

The importance of this industry for Mexico lies in the fact that it represents almost 4% of the national gross domestic product (GDP) and 20.5% of the manufacturing GDP, more than any other sector, according to the Mexican Automotive Industry Association (AMIA).