Heavy Vehicle Retail Sales Grow by 10 Percent in July: AMDA
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Heavy Vehicle Retail Sales Grow by 10 Percent in July: AMDA

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Rodrigo Andrade By Rodrigo Andrade | Journalist & Industry Analyst - Fri, 08/19/2022 - 12:02

The Mexican Association of Automotive Distributors (AMDA) reported an 10.83 percent year-over-year increase on retail sales of heavy vehicles in July 2022, reaching a total of 3,029 units, according to data from the Administrative Registry of the Automotive Industry of Heavy Vehicles published by the National Institute of Statistics and Geography (INEGI).

From January to July 2022, retail sales of heavy vehicles amounted to 21,654 units, a 19.14 percent increase over the same period last year. Despite this positive trend, Guillermo Rosales, Executive President, AMDA, highlights that pre-COVID-19 pandemic sales are still to be recovered: “However, the level of sales recorded in July is still positioned 10.4 percent below the same month in 2019, which was the best year in sales for this type of units in recent history.”

This marks the industry’s 12th consecutive month with positive results since August 2021. Sales in the heavy load segment also increased, with 2,647 units sold. However, sales of passenger vehicles decreased by 6.1 percent, with only 382 units sold. “The retail trade of heavy vehicles in the cumulative reference period compared to 2019 was still 14.3 percent under,” said Rosales.

The automotive industry in Mexico and abroad is dependent on the availability of resources and reliable supply chains. Disruptions in both areas have been a constant challenge for the past two years. The semiconductor demand skyrocketed since the start of the pandemic but production capacity has not been able to keep up. For that reason, several automotive companies have been forced to pause production several times during 2022.

Guido Vildozo, Senior Manager Americas of Light Vehicles Sales Forecasting, S&P Global Mobility, expects that the production of light vehicles will not stabilize until 2024. “[Production] is growing 15-18 percent but the additional 7 percent of semiconductors per unit increase, coupled with the fact that the hybrid and plug-in hybrid cycle will also increase, puts pressure on semiconductors. That is why [automotive manufacture] will not be normalized until 2024,” said Vildozo, as reported by MBN.

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