Introduction report on mexican automotive market

Introduction Report on Mexican Automotive Market

Report: "Mexican Automotive Market: Passenger Cars, Components and Spare Parts 2007/2008 -2010":

With a populaton of about 105 mio.inhabitants, Mexico is the second largest market in Latin America, after Brazil, and one of the largest markets worldwide. Mexico has managed a growth of its economy which today is called the Mexican miracle.With a GDP per capita of 8343 USD and average monthly wages of 581 USD, Mexico has a good position among emerging economies.

Mexico has a longstanding tradtion of car manufacturing. As early as1930, cars (GM) were assembled in Mexico. Mexico has no own OEM, although some cars are almost seen as local. Today, with about 2 mio. passenger car manufactured every year, Mexico is one of the top carmanufacturing locations worldwide.

Mexico passenger car market is characterized through a large, illegal inflow of used cars from the U.S. into Mexico. With closer ties of the Mexican with the U.S.economy, many cars are bought in the U.S. and brought to Mexico by individuals who never register these cars. With the opening of used car imports from the U.S. and Canada which was reversed beginningof 2008, the influx increased further. The imports mainly happen in the Northern regions of Mexico. The new car market suffered from the inflow of used cars and declined over the last years. Startingfrom 2007, we expect a turnaround of the new car market, but not a fast increase. Although the wealth of the population is increasing, the average Mexican still can not afford a new car and theeconomic success can hardly make up for the negative impact of the used car imports.

With offical used car imports being equal in numbers to new car sales, the Mexican car parc is increasing fast, butover 1 mio. from 2006 to 2007 and further on for the next years. Since a major share of the increase comes from used cars, there is an immediate effect on the aftermarket. While for very cheap cars...