New Car Sales Grow 20% in Mexico; EV Sales Hit Record in the EU

New car sales in Mexico grew 20% year over year in January 2023, according to the National Institute of Statistics and Geography (INEGI). During the first month of the year, 94,414 new light vehicles were sold, a 15.6% increase when compared to the same month in 2021 but still 10% below January 2020.

The rise in sales is largely attributed to the increase of availability, which automakers are prioritizing despite global supply chain disruptions. "January's result reflects an improvement in inventory levels, which, although still asymmetric among brands, has resulted in an improvement over the previous lag," says Guillermo Rosales, President, Mexican Association of Automobile Dealers (AMDA).

The 20% increase is a much-needed boost for the industry and could indicate a shift towards a more positive outlook for the rest of the year, as it exceeds the association’s expectations for the month by 3.3%.

Nissan remains the best-selling automaker in Mexico, with GM and Volkswagen also remain in second and third place, respectively. Chinese automaker Chirey, which reported sales to INEGI for the first time, sold 3,002 units, almost as much as other long standing car makers such as Ford and Hyundai.

EV Sales Reach Record High in EU
EV sales are skyrocketing in the EU, hitting 12% of all sales. Hybrid vehicles (HEV) made up for 22% of all new cars sold during 2022, the highest ratio in the region’s history, according to the European Automobile Manufacturers Association (ACEA).

This marks a significant increase from the previous year, when BEVs accounted for 8.5% of the market and HEVs made up 17.5%. The shift towards low-emission vehicles is driven by a combination of consumer demand and government incentives aimed at reducing transportation emissions.

Despite this phenomenon, traditional ICE vehicles still dominated the market, accounting for 36.4% of new car sales in the EU. However, it is expected that this gap will decrease during the next few years thanks to the growing popularity of electromobility among both organizations and automakers.

The EU has proposed to ban the sale of new ICE vehicles by 2035 and to reduce CO2 vehicle’s emissions by 2030, compared to 2021 levels. This initiative has drawn criticism from members of the automotive industry, such as Carlos Tavares, CEO, Stellantis who called for a renegotiation and asked to find a middle ground in the transition to zero-emission vehicles, as reported by MBN.