Image credits: ds_30
/
News Article

Automotive Industry Grows 15.2 Percent in May 2022

By Rodrigo Andrade | Fri, 06/10/2022 - 10:19

Mexico’s automotive industry is one of the largest in the world but the COVID-19 pandemic set production back. However, the sector is recovering and increased its overall production 15 percent from May 2021 to May 2022, manufacturing about 275,436 vehicles. Despite this progress, the sector has not been able to return to its pre-pandemic numbers. 

“The automotive industry has not been able to recover, despite the positive figures reported in May, but still faces the problem of semiconductor supply, as well as the impact of the fall in the US automotive market, which fell 30 percent during the fifth month of this year,” said Fausto Cuevas, General Director, Mexican Association of the Automotive Industry (AMIA). Production in May was 24.4 percent lower than in May 2019. 

Vehicle exports also took a step forward, growing by 1.1 percent year-over-year for a total of 244,643 exported units in May 2022. During 2021, exports hit their second highest month in May for a total of 242,020 units, slightly behind March’s 256,119 exported units, according to the National Institute of Statistics and Geography (INEGI).

During May 2022, Mexico sent 187,626 vehicles to the US meanwhile last year, surpassing May 2021’s 181,420. These are surprising numbers considering that for every 100 cars sold in the US, 17 of them were produced by its southern neighbor, according to El Economista. 

“It is not that we are in line for steady growth; however, May was a good month and we are conservatively optimistic about the months ahead,” said Cuevas. He also forecasted that assembly plants will not see a recovery until 2024, when there is greater availability of semiconductors.

Between Jan. and May 2022, the industry produced 1.38 million light vehicles, 3.5 percent more than in 2021. The sector exported 1.17 million units, a 0.3 percent drop in comparison to the first five months of 2021.

Photo by:   ds_30, stafichukanatoly
Tags:
Rodrigo Andrade Rodrigo Andrade Junior Journalist & Industry Analyst