Mexico Automotive Sector Performance and Outlook Report

This report provides an analysis of the Mexican automotive sector's performance and outlook as of June 2023. It outlines the stabilization of supply chains and the sector's recovery in domestic and foreign sales, despite production levels remaining below the peak observed in 2019. The report details that domestic sales grew by 25.7% year-over-year, with a total of 633,087 vehicles sold in the first half of 2023, indicating a 22.1% year-to-date increase. However, it notes a decline of 15.0% compared to the same period in 2017. The report also discusses the challenges faced by the sector, including potential input shortages due to export limitations from China and the impact of rising demand for microchips in other industries. Furthermore, it highlights market share shifts among automotive brands and the overall economic conditions affecting production and sales. The report concludes with a cautiously optimistic medium-term outlook for the industry, supported by a strong labor market and positive growth expectations.