Mexico HD Truck Market OverviewThu, 09/24/2015 - 15:44
Ignacio García, Vice President of Mexico and Latin America at Cummins
Speaker Ignacio García, Vice President of Mexico and Latin America at Cummins started his presentation on Mexico’s Heavy Duty Truck Market by saying that eight out of ten trucks in Mexico use a Cummins engine. He followed on by explaining that the company’s local sales were close to US$900 million and exports reached US$1.2 billion. According to García the US market is shrinking and the demand outlook is not optimistic for the next year. However, for the last two years, Cummins production has increased by almost 50%. Today, 73% of Cummins trucks are exported to satisfy 50% of the US demand. García also explained that Mexico is the seventh truck manufacturer in the world but is second in the freight market for local distribution and transportation just behind Germany.
According to the Vice President of Cummins, 40% of the trucks in Mexico are more than 20 years old. This situation is worsened by the 17,000 old, imported trucks bought from the US that enter the country without regulations. However, he insisted that emissions restrictions might change this situation. “Mexico is committed to improving its environment and will cope with US and Europe’s emission target by 2020,” he explained.
Lastly, García addressed the lack of fuel innovations for modern engines. New engines use a specific type of diesel that is only present in 30% of the Mexican territory, which is slowing down the introduction of new technology. “As soon as the required diesel is available the new technology will to improve the environment and the transport industry with less fuel consumption and emissions.”