Mexico Sees 6.1% Increase in Vehicle Production in 2024

Vehicle production in Mexico increased by 6.1% year-on-year in the first three quarters of 2024, reaching 3.03 million units, according to the National Institute of Statistics and Geography (INEGI).

In addition to the rise in production, light vehicle exports grew by 7.05%, totaling 2.59 million units. Domestic sales also saw significant growth, rising by 10.53% to nearly 1.08 million units. INEGI noted that 76.2% of the vehicles produced were light trucks, while the remaining were passenger cars.

Despite the overall positive performance, several manufacturers reported declines in production. Audi’s output dropped 17.4% year-on-year due to a strike at its Puebla plant from Jan. 24 to Feb. 18, resulting from a dispute over salary increases for 2024. Other manufacturers also experienced reductions, including Toyota with a 17.6% decrease, BMW at 14.5%, Mercedes Benz down by 8.2%, and Stellantis, which saw a 7.8% decline.

In September alone, light vehicle production in Mexico surged by 11.71% year-on-year to 378,583 units. During the same month, exports increased by 4.77%, reaching 315,706 vehicles. However, domestic sales experienced a slight contraction of 1.45%, totaling 116,543 units.

The automotive industry holds significant importance for Mexico’s economy, representing nearly 4% of the national gross domestic product (GDP) and accounting for 20.5% of the manufacturing GDP, more than any other sector, as reported by the Mexican Association of the Automotive Industry (AMIA).

In 2022, the sector rebounded with a 9.24% increase in production following a 2% decline in 2021 due to semiconductor shortages and a more than 20% drop in 2020 due to the COVID-19 pandemic, which forced the shutdown of the industry in its initial months.