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News Article

Heavy Vehicle Production, Exports Hit by Shortages

By Antonio Gozain | Thu, 10/14/2021 - 10:46

Despite mobility going back to normal and an increasing demand, heavy vehicle production and exports decreased in September by 8.8 percent and 11.3 percent, respectively. This was mainly due to semiconductor shortages and supply chain disruptions, said Miguel Elizalde, President of ANPACT, the national association of heavy vehicle manufacturers.

Heavy vehicle production in Mexico went down from 13,547 units produced in September 2020 to 12,357 units in September 2021, an 8.8 percent decrease and a 27.1 percent decrease when compared to September 2019. Exports (10,772 units) suffered the third consecutive contraction of the year and decreased by 11.3 percent when compared to September 2020.

In comparison, the gradual return to normal in mobility, following the restrictions of 2020, boosted passenger heavy vehicles sales, which increased by 230.2 percent from September 2020 (129 units) to September 2021 (426 units). With one quarter to go in 2021, accumulated wholesale amounted to 22,318 units, 39.4 percent more than the 16,010 units sold during the 2020’s first three quarters.

"Sales data show a market response to resuming work and academic activities. However, it is still necessary to recover pre-pandemic levels and the dynamism that the industry had in previous years,” Elizalde said to El Economista, adding that the association is lobbying a tax incentive package to promote the renewal of vehicle fleets in the country.

Meanwhile, light vehicle production, exports and sales saw their worst September in 10 years. Mazda suffered a decrease of 58.9 percent in sales during the month, while General Motors’s sales shrank by 29.8 percent and Nissan’s by 13.2 percent. Light vehicle exports in September 2021 decreased by 24 percent compared to September 2020.

CDMX to Invest Over MX$80 million in New Buses

The Ministry of Mobility of Mexico City (SEMOVI) announced an MX$80 million (US$4 million) investment in a substitution program for the minibuses that circulate on routes 17 and 28 to continue with the Legaria corridor project.

SEMOVI informed that the goal is to replace 178 gray minibuses, which average 27 years circulating, to improve the user experience while meeting better road safety and environmental standards. “These minibuses will be replaced with new units that will enter the new Legaria corridor, which will directly benefit up to 65,000 users daily," said SEMOVI in a statement.

The data used in this article was sourced from:  
MBN, El Economista, ANPACT
Antonio Gozain Antonio Gozain Journalist and Industry Analyst