Light Vehicle Sales See Worst September in 10 Years

Light vehicle sales in Mexico had their worst September since 2011 (when they amounted to 73,998 units) and hit the lowest level for any month since July 2020, following the 76,930 units sold during the month, revealed INEGI. September represented the third contraction in sales of 2021.

“The results of September reflect the deterioration of the market, marking the third negative rate so far in 2021 and the first decrease after six consecutive months of progress. These results reflect the restriction faced by the lack of inventory linked to the shortage of semiconductors that impacts various industries globally,” said to El Economista Guillermo Rosales, Director General of AMDA.

September 2021’s sales decreased by 1.7 percent compared to September 2020’s 78,235 units. The 76,930 light vehicles sold in September 2021 fell below AMDA’s expectations, which stood at 80,352 units, a 4.26 percent differential.

Mazda suffered a decrease of 58.9 percent of light vehicle sales during the month, while General Motors’s sales shrank by 29.8 percent and Nissan’s by 13.2 percent. During 3Q21, Nissan continued to be the sales leader in Mexico, hoarding 19 percent of the total market, while Volkswagen unseated GM as the second place in sales volume with an 11 percent share.

Uncertainty regarding suppliance and product availability in the market will continue in the upcoming months, said industry experts. The light vehicle original sales forecast for 2021 was 1.56 million units, a 106,000-unit increase compared to 2020.

The global automotive industry has been hit hard since 2020 and will continue to suffer shortages during 2022, according to global analytics firm IHS Markit. Despite the advancements done in vaccination across the world, pandemic-related disruptions and supply chain bottlenecks will continue impacting the sector for the next 12 to 18 months.

“We expect a great reset for the industry, which will be paralyzed depending on how many units can be manufactured, not on what consumers want. There are no inventories; it will be a great reset. Supply will drive demand, not the other way around,” said during Mexico Automotive Summit 2021 ECHO Guido Vildozo, Senior Manager, Americas Light Vehicle Sales Forecasting at IHS Markit.

German Auto Sector Worst September in 30 Years

The 196,972 new vehicles sold in Germany during the last month represented the worst September in Germany since 1991, reported AFP. The total sales for 2021 have been 2.02 million units, which is 1.2 percent below 2020’s figures. Following a slight recovery in 1H21, the market was held back by a persistent shortage of semiconductors, according to German authorities.