Mexican car exports stop growing after 3 years of expansion

Mexico‘s auto exports stopped growing in 2020 after three years of expansion, according to data from the Ministry of Economy.

For all of 2020, the contraction of auto exports was 20.4% year-on-year, to 40.495 million dollars.

Overall, the Covid-19 pandemic negatively affected the global economy beginning in the first quarter of 2020 and continued through the remainder of 2020.

The impact on the economy affected both the demand and supply of manufactured products in many countries around the world.

Between 2017 and 2019, Mexico’s auto exports climbed continuously: first 32.7%, the following year 18.5% and finally 3%.

This positive streak arose after a 4.3% drop in these external sales in 2016, at an annual rate.

Auto exports

The state and local governments of the United States (the first destination of Mexico’s car sales abroad) ordered restrictions on the movements of citizens (that is, requests for refuge in place or to stay at home) or on personnel in retail trade or manufacturing activities in physical locations.

As a result, many companies downsized their operations and laid off their employees.

In counterpoint, the US federal government approved several relief measures, including the Coronavirus Relief, Relief and Economic Security Act (CARES Act) and the Families First Coronavirus Response Act, in an attempt to provide short-term relief. term to families and companies as a result of the economic impacts of the pandemic.

According to industry sources, there were approximately 280 million light duty vehicles in operation in the United States as of December 31, 2020.

During calendar year 2020, it is estimated that approximately 14.5 million new cars and 37 million used cars were retailed.

Among the main destinations for Mexico’s auto exports are: the United States, Germany, Canada, Brazil, Italy and China.