Vehicle production in Mexico drops 29.2% during June

MEXICO –  In June 238,946 vehicles were produced in Mexico, 29.2% lower than that registered in the same period last year, the National Institute of Statistics and Geography (Inegi) reported.

This represented a slowdown from declines in April and May, when there was a slump in activity of 98.8 and 93.7%, respectively. In mid-May, federal authorities considered the automotive sector among the essential industries in the midst of the coronavirus pandemic, so they were able to resume activities as soon as they could in June.

“The automotive industry is a driving force of Mexico and our commitment is to continue being active protagonists in the next stage after Covid-19,” said Fausto Cuevas, general director of the Mexican Association of the Automotive Industry (AMIA).

Even with the reopening of the automotive industry, there are companies that continue to work with a part of their productive capacity while they get used to the new normal and the global demand for cars that remains depressed by the economic crisis that caused the pandemic.

General Motors was the one that produced the most cars in the sixth month of the year, with 74,098 units, 4.8% lower than that reported in the same period last year, followed by Fiat Chrysler Automobiles (FCA) with 45,501 cars, 18.9% below what was reported in the sixth month of 2019;these companies restarted since the end of May.

This also allowed the automotive industry to export 196,173 cars in June this year, 38.8% lower than that registered in the same period of 2019; a clear slowdown compared to the falls in April and May in this item, which were 90.2 and 95.1%, respectively.

The company that sent the most vehicles abroad was General Motors with 67,486 cars, 12% below what was reported in June 2019, while FCA followed with 31,129 vehicles, 42.2% less than what they achieved in the same period last year.

In accumulated figures, between January and June 1,173,180 cars were produced in Mexico, 40.8% below what was reported in the same period last year, the biggest drop since the 2009 global economic crisis. While 1,018,419 cars were exported in the first half of the year, 41.7% lower than what was registered in the same period of 2019, also the biggest drop in 11 years.

Source: El Financiero