Mexico 2024. Car Market Ends Q1 Up In Double-Digit

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Mexico Cars Market starts off with a double-digit increase the 2024. Sales in March 2024 have been 124,395 (+4.7%) while first quarter ended with 349,751 (+11.0%). Volkswagen and Ford are shining among the top players.

 

Market Trend and Outlook

After the global crisis unleashed by the Covid-19 pandemic, Mexico has sustained an annual economic growth of between 3% and 4%. The year 2023 marks the third consecutive year that Mexico’s economic growth has outpaced market analysts’ early-year forecasts. Looking ahead to 2024, the economic outlook remains cautiously positive.

This vigorous growth largely stems from a set of supply-side public policies launched at the onset of President López Obrador’s administration. These policies, including comprehensive labor reforms and strategic financial management, have cultivated an environment conducive to investment, resulting in a robust labor market and a marked increase in both public and private investments.

The fiscal strategy of the current administration has successfully kept the country’s debt-to-GDP ratio at a low level by international standards, enhancing Mexico’s appeal to global investors. Simultaneously, this administration has broken with the economic dogma that social spending and public investment are inversely related, managing to boost both while keeping debt levels stable.

This strong momentum is evident in the Mexican vehicle market, with sales in March 2024 reaching 124,395 registrations (+4.7%). YTD sales reached 349,751 units (+11.0%). 

Looking at cumulative data up to March 2024 brand-wise, the first two spots remain unchanged, with Nissan in 1st at 61,829 sales (+4.5%) and Chevrolet in 2nd at 46,055 (+25.3%), while Volkswagen into 3rd with 31,776 registrations (+27.7%).

Toyota gains 1 spot ranking into 4th position with 27,942 sales (+22.2%), followed by Kia with 24,804 sales (+7.2%), Mazda at 20,195 (+4.8%), MG with 13,421 registrations (+2.7%) and Ford -up 1 spot- with 12,665 units sold (+32.3%).

Hyundai loses 1 spot and ranks in 9th with 12,006 sales (+11.4%) and Suzuki closes the Top 10 with 10,537 units sold (+11.9%).

Looking at specific models the Nissan Versa becomes the market’s best-seller, with a 25.1% year-on-year increase in sales, followed by the Nissan NP300 down 11.0%.

 

Medium-Term Market Trend

The Mexican automotive industry grew uninterruptedly from 2010 to 2016 with sales booming from 803,263 in 2010 to the all-time high at 1,61 million in 2016. The trend reversed in 2017 falling for 3 years down to 1.32 million in 2019.

Covid-19 forced manufacturers and distributors to close down, causing the car market to drop 28% to 952,982 sales by the end of 2020.

After the pandemic the market recovered, growing 6% in 2021 back above the 1 million mark. 2022 grew another 7% to 1.09 million cumulative sales. Despite the market reporting increases in sales, lately the global industry has been confronting some big problems: firstly a disruption in the global supply chain caused by a lack of raw materials, in particular for the production of microchips and the Governments push towards Evs, an expensive alternative for many consumers if compared to ICE vehicles.

In 2023 the market maintained momentum with sales reaching 1.36 million units (+25.4%), third growth in a row and third highest level ever.

 

Tables with sales figures

In the tables below we report sales for all Brands, top 10 Manufacturers Group and top 10 models.

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