Mexican Heavy-Vehicle Industry in a Nutshell

INEGI has just published the data related to heavy vehicles' exports, imports, sales and production. The data was provided directly by the 13 heavy-vehicle brands affiliated to ANPACT. “Administrative data on heavy and light vehicles allows us to evaluate the rhythm of the national economy,” said Arturo Blancas, INEGI's Statistical Economics Director during a press conference.

Heavy-Vehicle Exports and Imports

Mexico is the world leader in heavy-vehicle exports. According to World Top exports' portal, in 2019, Mexico contributed 19 percent of total exported truck value at around US$26.1 billion. Second place belongs to the US with 12.4 percent and a value of US$17.1 billion. As in the light vehicle segment, more than 97 percent of heavy-vehicle exports go to the US, followed by Latin American countries such as Colombia, Peru, Chile, Ecuador and Costa Rica. 

Exports in the country in terms of number of units decreased considerably during 1H20. While from 1H18 to 1H19 exports increased by 27.14 percent, from 1H19 to 1H20 exports decreased by 42.11 percent. 

In terms of imports, Japan is the main supplier of heavy vehicles to Mexico, accounting for 41.22 percent of the total imports since January 2018. During 1H20 Japan's import share accounted for 53.22 percent of total imports, growing almost 20 points from the previous 34.4 percent share during 1H19.

During 1H20, Japan's imports followed those of China with 12.09 percent of the market share. However, considering historical data, since January 2018, top imports come from US with 13.79 percent, Brazil with 11.59 percent and China with 10.27 percent.

Heavy Vehicle Sales

Regarding sales, unlike the light-vehicle segment, heavy-vehicles experimented an upward trend during 2018, reaching their peak during 2Q19. Sales increased 30.1 percent from 1H18 to 1H19, but during 1H20 decreased by 55.7 percent. During April and May, heavy vehicle sales were also hit by the global pandemic. Sales decreased by 70.9 percent in 2Q20 compared to the same period in 2019. Breaking sales down by brand, three brands held almost 70 percent of the market between January 2018 and June 2020: Freightliner with a 27.26 percent share, Kenworth with 22.73 percent and International with 18.17 percent. 

Heavy Vehicle Production

Mexico's production of freight and heavy passenger vehicles increased steadily between 1Q18 and 3Q19, reaching a peak of 55,604 units produced in the latter period. In aggregated figures, production during 1H20 decreased 44.3 percent going from 103,998 units in 1H19 to 57,902 in 1H20. Since 2018, heavy-vehicle production in Mexico is divided 96.4 percent cargo vehicles and 3.6 percent passenger vehicles. 

As for Mexico's top producers, two companies have more than 85 of the total production: Freightliner with an accumulated share of 54 percent since January 2018 and International with 33 percent. Kenworth has a 9.4 percent of total production, followed by Mercedes-Benz Buses with 1.48 percent. Other brands’ production share is below 1 percent. 

“The economic challenges that lay ahead will demand new standards and practices. The heavy-truck producers and the transportation industry need to be part of the solution. Achieving an efficient and integrated mobility in urban centers and increasing the productivity in the transfer of goods will require public policies that encourage the structural renewal of the heavy-vehicle fleet,” Miguel Elizalde, ANPACT’s Executive President, wrote for Mexico Business News. 

You can read Miguel Elizalde’s expert opinion here.