Heavy-Vehicle Segment Also Affected by COVID-19

The pandemic has also impacted heavy vehicle production and exports. According to ANPACT's Executive President Miguel Elizalde’s interview with Transportes magazine, "the fall in production and exports is due to the demand contraction in Mexico, the US and Canada, which indicates a decrease in economic activity. Let us not forget that heavy vehicles participate in different sectors.”

ANPACT's figures show an 85.1 percent reduction in heavy vehicle manufacturing during April 2020, compared to April 2019. In accumulated figures, the industry experienced a 39.5 percent production fall. Exports also saw an annual 82.5 percent drop in April and a 35.8 percent drop during the first four months of the year. 

Earlier this month, during a press conference with AMIA, AMDA and INA, Elizalde reported sales figures for the first five months of the year showing that wholesales dropped 38.5 percent while retail sales fell 47.6 percent. At that moment, Elizalde mentioned the circumstances were worst for the sector than during the 2009 financial crisis. 

You can read the article on the press conference here.

Although complicated, the scenario still presents an opportunity to create a spillover effect among transportation SMEs. "If today we support owner-operators and SMEs, we will boost all economic sectors, keeping job positions and spilling well-being to millions of families," said Elizalde. For this to happen, public policies promoting a renovation of heavy vehicle fleets remain essential. 

Transportes magazine also reports an annual 5.68 percent inflation rate for heavy vehicle prices during May. "Higher inflation is not that related to essential supplies. Rather, it could be associated with greater risks the industry is experiencing given increasing security concerns. Unfortunately, unlawful activities such as theft have not been controlled and they impact prices accordingly," says UNAM Economist, César Salazar. During March and April, the sector experienced the steepest increase in prices since 2018 at 6.05 percent and 6.54 percent, respectively. The overall inflation rate in the country was 3.12 percent in May and 3.07 percent in April. 

Elizalde has continuously highlighted the essential role of heavy vehicle transportation amid the COVID-19 pandemic. "In a context with a high number of truck robberies, technological advances, an average 18-year-old vehicle park, high-impact to SMEs and, of course, the pandemic, the transportation sector is still at the frontline. This sector is key to build the new normal we need. We need to support our heroes," he said.