Car Production Falls 98 Percent in April, Exports Fall 90 Percent

Records on COVID-19's impact on the Mexican automotive industry were reported today by INEGI. Production and exports figures dropped sharply to historic lows. Lockdown measures in the US and Mexico have not only damaged demand but also halted production for over a month. 

Export figures fell sharply for most OEMs in the country. Only 27,889 units were exported last month, a 90.2 percent decrease compared to April 2019. Top exporters and the only ones above 5,000 units last month were FCA with 9,196 units, Kia with 6,062 units and GM with 5,282 vehicles. Toyota ceased to export during April, while Nissan just exported 91 units, 99.7 percent less than in March. 

Accumulative figures show export levels similar to 2014. During the January-April period in 2014, 808,532 units were exported, while in 2020 exports reached 807,158 units. However, there were four less OEMs six years ago. Top exported models during April were, in decreasing order, Kia Forte, RAM 2500, RAM Promaster, Jeep Compass and Volkswagen Tiguan. 

Production during April showed the sharpest fall ever experienced in the history of Mexican auto production. The industry recorded 98.8 percent negative growth compared to April 2019. Compared to March, production also fell 98.6 percent. Only 3,722 new vehicles were assembled.

Out of the 13 OEMs in the country, only two produced vehicles: KIA and Ford. The latter produced one Ford Fusion and 17 Mustang Mach-E, the electric SUV announced just recently by the company to increased its EV offer. Kia, on the other hand, produced 3,704 units. The South Korean company was the last OEM to suspend operations in the country and it agreed to do following a government request. Regarding accumulative figures, 912,115 vehicles were produced in the country between January and April 2020, 28 percent less than 2019. 

The automotive industry suffered similar production shutdowns across the world. However, in Europe plants started to resume operations in late April, while in North America OEMs are getting ready to resume operations on May 18. Operations must be conducted under the strictest health recommendations. Otherwise, contagions could put plants’ operations at risk.