Mexican Second-Hand Vehicle Startups Continue ExpandingBy Alfonso Núñez | Thu, 12/02/2021 - 15:15
Previously-owned vehicle sales startups have only continued to dominate the Mexican market. While unicorn Kavak is sponsoring the Mexican National Selection on its journey to the 2022 World Cup, new competitor Odetta has entered the market.
Meanwhile, the shortage of semiconductors continues to affect sales domestically and globally. However, auto brands are not letting shortages stop their expansion: BMW’s Hungary plant is slated for a 2025 opening and Tesla officially moves to Texas.
This week in automotive:
Kavak Sponsors Mexico’s Journey to the 2022 World Cup
The Mexican unicorn announced its commercial partnership with the Mexican Soccer Federation (FMF) to sponsor Mexico’s National Selection on its journey to the 2022 World Cup. In doing so, Kavak holds a sponsorship title previously held by global companies like Adidas, Coca-Cola and automobile brand Jeep. The sponsorship will guarantee Kavak’s exposure to the global World Cup audience at the same time the company continues to focus on international expansion.
Pre-Owned Vehicle Seller Odetta Opens
Meanwhile, Kavak has new competition in its home market as the latest digital seller of used-vehicles Odetta opened. As a smaller company, Odetta is able to offer sellers 11 percent broader margins on sales and shoppers 5-7 percent savings on purchases thanks to its lower commissions. The used-vehicle market continues to expand as auto manufacturing faces a variety of crises.
Auto Prices Grow Faster than Inflation
The Mexican Association of Automotive Distributors (AMDA) announced an 8.5 annual percentage rate (APR) increase to car prices in Mexico, explained by the Mexican Association of the Automotive Industry (AMIA). The increase in prices comes as a result of materials and consumables increasing in price, in turn increasing the final cost of purchasing a vehicle. Sales of vehicles in the country are barely expected to beat out those of 2020, and remain far from 2019 sales after a temporary recovery was halted by shortages to auto parts across the world.
Tesla Makes Move to Texas Official
Tesla Inc. is now officially headquartered in its Austin, Texas, factory after CEO Elon Musk grew frustrated with the public health officials of its previous headquarter, located in Alameda County, California. The electric vehicle and clean energy company will keep a strong foothold in the Bay Area, according to Musk, but will be operated out of Texas, a state known for levying no personal income tax.
BMW Appoints New Director for Delayed Hungary Plant
BMW Group named Hans-Peter Kemser as director for its new plant in Debrece, Hungary. The factory will begin building electric models from BMW’s New Class series in 2025, two years after its original 2023 planned opening, and will produce 150,000 vehicles a year.
Renault Sees “Difficult” Chip Supply Until At Least Mid-2022
French auto-manufacturer Renault is expecting the semiconductor shortage currently limiting production to last until mid-2022, at the very least. The shortage will continue impacting the manufacturing of vehicles. To deal with it, Renault will prioritize output of higher-margin cars and commercial vehicles, where demand remains strong.