Mexico Auto Output Reaches Record High in 2012 image

Last year automakers in Mexico manufactured a record 2.88 million vehicles, an increase of 12.8% compared with 2011.

According to the Mexican Auto Industry Association (AMIA), auto exports last year reached an all-time record with 2.36 million units, an increase of 9.9% compared with 2011. Automakers reported less impressive figures in December with production up only 0.2% to 180,597 vehicles, and exports falling 9.7% to 154,724 vehicles compared with the same period in 2011. Local sales last month also fell 4.2% to 110,849 vehicles.

Guillermo Rosales of the Mexican auto dealers association said that his group is currently looking into what caused the sales drop in December, as he believes this was not a trend but a problem related to the availability of credit. Overall, 2012 market a profitable year for the Mexican auto market, with several automakers announcing their plans to build plants here and the existing ones significantly increasing capacity over the year.

Officials say that the factors that led to this increase were the country’s trade agreements with Canada, the US and the Latin American neighbors, added to the competitive costs. The head of AMIA, Eduardo Solis, said that in 2012 Mexico sold around 1.5 million new vehicles in the US and estimated that auto production this year in the country will reach a record 3 million units.