Mexico’s Auto Industry Revved Up for 2024 Growth
By:BanderasNews
Mexico’s auto industry had a record year in 2023, with production almost back to 2019 levels. The industry witnessed an exceptional boost in exports, soaring to unprecedented levels during the first 11 months of 2023, setting the stage for further growth in 2024.
Trucks Dominate the Scene
SUVs and pickups took center stage, constituting nearly 80% of the total production. Nissan emerged as a frontrunner, boasting a remarkable 57% surge, closely followed by impressive gains from industry stalwarts Ford and BMW. Despite being in its nascent stages, the electric vehicle (EV) segment experienced a twofold production increase in 2023. With giants like General Motors intensifying their EV initiatives, a rapid ascent in these numbers is anticipated.
Navigating Challenges, Celebrating Success
While a slight dip in production was noted in December, industry experts dismiss it as a momentary blip. Automakers are in overdrive, reconfiguring their factories for upcoming models, particularly focusing on expanding their EV portfolios. Key players such as Kia, Nissan, GM, and Toyota are actively participating in the EV race within Mexico.
Exports Blaze Ahead
Despite the temporary slowdown in production in December, exports surged to a record high, dispatching over 280,000 cars globally. The United States retained its position as the primary buyer, acquiring a substantial 77% of Mexican-made vehicles.
Revved-up Domestic Market
The domestic market witnessed a significant upswing, with Mexican consumers increasing car purchases by almost 25% in 2023. Nissan claimed the top spot, followed by GM, VW, Toyota, and Stellantis, indicating a robust local demand.
Future Prospects
The industry anticipates an 8.5% increase in production during 2024, surpassing pre-pandemic levels. With a steadfast focus on EVs, surging export figures, and a thriving domestic market, Mexico’s automotive sector is steering confidently towards a promising future.
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