April Auto Production in Mexico Up 16% image

Auto production in Mexico increased 16% in April compared with the same period last year, after customers delayed purchases in March because of the Holy Week holidays.

According to the Mexican Automobile Industry Association auto output last month reached a new monthly record of 238,766 vehicles. Auto exports also increased 2.8% to 185,548 vehicles, another record for April. Exports to the US were up 3.8%, while deliveries in Latin America dropped 12% because of the import quotas in Argentina and Brazil.

Auto sale in the home market rose 20% in April to 83,527 units, after a drop in March caused by the calendar factor from Holy Week, according to Amia president Eduardo Solis. During the first four months of the year auto production increased 5% to 966,337 units compared with the same period last year.

Automakers begin to expand in Mexico, with Audi breaking ground on its $1.3 billion plant, located in San Jose Chiapa, where the automaker will manufacture the Q5 SUV beginning with 2016 and add three new SUVs by 2020. Honda plans to build a transmission plant in Mexico, for which it will invest $470 million and which will be opened in the second half of 2015. Chrysler also announced it will manufacture the Fiat Ducato commercial van at its plant in Saltillo, Mexico.

Source: The Wall Street Journal