Auto Sales Drop to Historic Lows in April

INEGI released today the early figures for auto sales in Mexico in April. Although better than what AMDA had originally forecasted, the figure sets a historical low for car sales in recent times in Mexico as only 34,903 units were sold last month.

Sales dropped by 60.1 percent compared to March, while compared to last year's April, sales plummeted 64.5 percent. Normally, the second quarter of the year is the period with lowest sales, but the lockdown measures implemented in the country due to the COVID-19 pandemic have worsened the trend.
 

Ultimately, figures look better than what was originally expected. Early in April, AMDA forecasted a negative annual variation above 90 percent for April and May, the biggest in history. Only 7,832 units were expected to be sold last month. As for accumulated sales during the first four months, the total stands at 331,580 units, which is similar to the accumulated sales seen in 2013 and 2014. May results will tell if it is plausible to expect above 1 million units to be sold by the end of the year.

Sales in the US market in April also performed better than expected. According to CNBC, OEMs in the country reported sales drops between 39 and 54 percent, slightly lower than the 53 percent forecasted by auto research firms. The figure, however, is the lowest in decades. 

In Mexico, on average, all brands reduced their sales by 50.5 percent from March to April. The one that took the largest hit was Acura with an 85.6 drop, from 90 to 13 units sold. As for market leaders, in decreasing order, Nissan, GM, Volkswagen, Toyota and Kia remain the Top 5 in sales, with an average drop of 63.5 percent compared to March.

Automotive activities, other than maintenance, have not yet been labeled as essential by Mexican authorities. Ongoing claims from different players in the sectors have urged the government to establish measures to support the sector but efforts have been unsuccessful.