While sales in the Mexican automotive market remained subdued in the first half of 2018 car exports have increased 10%, helped by new production plants.
- In 2017 Mexican vehicle production increased 13% to more than four million units, according to the International Organization of Motor Vehicle Manufacturers OICA. Exports increased 12% in 2017 and 10% in H1 of 2018, helped by new production plants. That said, domestic market sales remained subdued in H1 of 2018 (also due to higher fuel prices).
- Profit margins of OEMs and Tier 1 suppliers are expected to remain stable, as Mexico imports only 10% of car parts used by assembly companies, and therefore an immediate effect of punitive tariffs on steel and aluminium is not expected. In addition, many car parts producers (often subsidiaries of global groups) have hedged against price volatility.
Read the full report here: Market Monitor Automotive Mexico 2018