Auto production in Mexico surges to biggest level in more than two years image

Backed by the numerous new factories opened last year, Mexico’s car output jumped the most in two and a half years last month, and according to the Latin nation’s industry trade group forecast should continue its rapid rise in the coming years.

Figures collected by the Mexican Auto Industry Association (AMIA) showed that vehicle production jumped 27 percent from December 2013, the largest climb since April 2012 and auto exports followed the trend, surging 21% in December as well. Overall, the total car production in Mexico rose 9.8 percent in 2014 from the same period a year ago and reached a record tally of 3.22 million autos – with exports closely behind with a 9.1 percent climb to an all-time high of 2.64 million units, announced AMIA. When it comes to the local North American exports, the situation was biased, with United States deliveries rising 22.3 percent last month and slightly falling – by 0.8 % for Canada. Other countries in Latin America saw a surge in Mexican exports, soaring 17.9 percent, while the association pointed out that Mexico shipments towards Asia skyrocketed by 115 percent, fully compensating the European regional drop of 22.3 percent.

The Mexican government said that since Enrique Peña Nieto became president back in December 2012, the global automotive industry poured around $19 billion in investment deals in Mexico, taking advantage of the country’s numerous and advantageous trade deals. The industry trade body also announced that domestic auto sales increased by 11.7 percent in December to a total of 133,273 vehicles. AMIA President Eduardo Solis added that the association’s forecast for the annual vehicle production in Mexico is to see some 5 million units manufactured by the end of the decade.

Via Reuters