New Car Sales in Mexico Dip 1.4% in September 2024

In September 2024, new car sales in Mexico fell by 1.4% compared to the same month last year, marking the first decline in 29 months. Data from the National Institute of Statistics and Geography (INEGI) shows that 116,543 vehicles were sold, down from 118,252 in September 2023. This decrease is attributed to a correction in vehicle demand following a period of unexpectedly strong sales in prior months. 

"The months prior had a stronger performance than anticipated, and now we are seeing a demand adjustment," said Guillermo Rosales, President, Mexican Association of Automotive Distributors (AMDA). 

Industry experts identify several factors contributing to the decline in sales, including the entry of new Chinese car brands into the Mexican market, which has posed challenges to sales transparency.

"Certain car brands are selling vehicles in Mexico without reporting their results to INEGI, making it impossible to determine how many units they are delivering. This complicates the analysis of the market's true state," Rosales explained. He noted that brands like Chirey, Geely, and BYD do not fully disclose their sales figures to INEGI.

Despite the September decline, overall sales for 2024 show a 10.5% increase compared to the same period in 2023, totaling 1,079,413 vehicles sold. Rosales indicated that while growth is expected to slow in the final quarter of the year, "we anticipate steady, albeit slower, growth moving forward."

The data for September also reveals an 8.7% drop in monthly sales compared to August 2024, with 11,141 fewer vehicles sold. This is the first sales decrease since April 2022, when a 1% decline was recorded. Rosales also pointed to other potential influences on the market, including political changes in Mexico and the upcoming US elections, which may contribute to consumer uncertainty.

"If tariffs are applied to vehicles produced in Mexico that meet the requirements of the USMCA, they would be a violation. However, if they are targeted at Chinese brands or any other manufacturer that does not comply with the treaty’s terms, there would be no significant issue," said Odracir Barquera, General Director, Mexican Association of the Automotive Industry (INA). 

While the market adjusts, several manufacturers, including Jetour, Nissan, and Kia, continue to report positive performance. Jetour, a Chinese brand, has led growth during the first nine months of 2024 with a remarkable 324% increase in sales. Nissan, the market leader, sold 18,727 vehicles in September, reflecting a 7% year-on-year decline.

"For the full year, sales could exceed 1.5 million units, although the growth will be slower than initially expected," noted Rosales. The push for hybrid and electric vehicles continues to grow, with new models expected to drive sales in the coming months.