Car sales first drop since half-year since 2009

Sales of new light-duty vehicles in Mexico fell 6% in June, selling 119,713 units, compared with 127,410 cars in the same month of 2017, a 13-month downturn, according to the report. Mexican Association of the Automobile Industry. (AMIA) and the Mexican Association of Automobile Distributors (AMDA). In the first half of 2018, sales were down 8.4%, with 680,699 units, its first contraction since 2009.

Factors that influenced consumers' decision to acquire a vehicle were the uncertainty due to the election on July 1 to elect the President of Mexico, coupled with tense trade negotiations with the United States, and the volatility of the exchange rate that alters costs, as well as l & # 39; inflation.

The decline in sales during the sixth of June represents the second "weakest" decline since the month of April, after a 4.6% decline in marketing, although nothing can be compared at last year 's double – digit spreads.

Korean Kia, for the first time in three years of sales in Mexico, it slowed its sales compared to the previous year. Last June, it sold 7,353 units against 7,430 in 2017, a slight decrease of 1%.

Volkswagen and Nissan continue to lose ground against their rivals, stopping to sell 9,470 units (4,663 VW cars and 4,807 Nissan cars), higher than the decline reported by the company as a whole. 39, industry of 7,697 vehicles. General Motors had a slight rebound of 0.2% last June, placing 21 314 cars against 21 262 cars sold in the same month of 2017. The Italian-American brand FCA has reduced its sales by 2.3% and so sold 7,824 units against 8,010 the previous year.

Toyota achieved a double-digit positive result, rebounding 10.8% in the sixth month of the year, and sold 8,698 vehicles against 7,850 in 2017. While Hyundai maintains its momentum, growing 16.6%, rising from sales to 3,703 to 4,317 cars. In addition, for the first time, the Chinese JAC declared its sales in Mexico, with 201 cars sold

"The main short-term risks are the deterioration of the exchange rate and the fall in investments due to the delay of the renegotiation of the North American Free Trade Agreement, which can influence an inflationary rebound and stagnation in the generation of jobs, "said Guillermo Rosales, director of AMDA.

During the first half of 2018, sales of Light-duty vehicles in Mexico decreased 8.4% to 680,699 units, compared to the same period of the previous year.

AMDA maintains the sales forecast, low scenario of 1 million 452,000 units at the end of the year, with opportunities to increase to a level of 1 million 480,000 units if the economic environment is stable. ;improved.

"We expect a better market performance in the coming months derived from the decline in inflation.In addition, an orderly transition period (from the government) is noticeable, so that the risks for the economy and the automobile market decline, "said Rosales.

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