Mexico saw both automotive production and related exports on the rise last month, with record levels for January – according to the Mexican Auto Industry Association.
The industry body said the record levels for both auto production and car exports tallied last month were mostly due to surging demand from the United States and Canada. AMIA figures show that automotive output increased 6.8 percent in January from the same month in 2014 with a total of 266,424 autos. The exports jumped 15.2 percent to 204,907 units. “This is the first time that Mexico has reached a number above 200,000 for exports in the month of January,” commented AMIA President Eduardo Solis. A flurry of global automakers establishing local production facilities in the country is responsible for the growth, as the companies take full advantage of the lower labor costs and the excellent free-trade deals Mexico has set up with all regions.
Naturally, the NAFTA region is the one taking the lion’s share of the exports, with Mexican auto exports to the United States soaring 13.7 percent, compared to the same month in 2014, while Canada jumped even further, up 35.8 percent. Additionally, auto exports sent to Asia rose by 35.8 percent and by 15.3 percent for Europe, offsetting the slumping demand of Latin America, which fell 25.5 percent. Last year, auto production output grew almost 10 percent versus 2013, achieving a new annual record as the global automakers opened new factories in Latin America’s second largest economy.
Via Automotive News