May Sales Results: Still Low but Better Than April

INEGI released today the early figures for auto sales in Mexico during May. Even though sales grew 17 percent compared to April, figure remains at historic lows with just 42,028 units sold in May, almost 60 percent less than in May 2019.

"The recovery of the automotive market will be slow and conditioned by the decrease in income and the increase in unemployment and credit risk," says Guillermo Prieto, President of AMDA, in an interview with MBN. Accumulated sales between January and May suffered a 30 percent drop compared to 2019.

During lockdown, most dealership activities were suspended except for maintenance services. Thus, digital sales, as well as credit strategies, were set in place by different dealership groups to boost results. "In these days of social isolation to face the health contingency, many people have changed their consumption habits and this includes using the internet to interact with vehicle dealers. This trend requires a radical change in attitude to serve the customer, generating empathy in the maintenance process, even at a distance," says Prieto.

Regarding brand performance during in May, on average brands increased their sales by 22 percent compared to April. However, average annual variation is set in negative 62.7 percent. 

The worst hits were taken by the premium and luxury segment with Bentley, Jaguar and Acura. With the exception of Mazda, Ford, Subaru, Mercedes-Benz and Toyota, all brands presented negative annual variations above 50 percent. 

"The expression ‘the new normal’ is increasingly accepted, understanding with it that social behavior will be modified by COVID-19 and that we will not carry out our daily activities as we did before the arrival of the pandemic. In addition, vehicle sales are also adapting to change and we will do so with the experience of a sector that has the capacity to rapidly transform and strengthen itself in the face of crisis," says Prieto.

Read Guillermo Prieto’ full Expert Opinion: Automotive Sector Transforms Itself to Face the Post-COVID-19 Era.