Online Car Sales in Mexico Grow 26%: Mercado Libre

Mercado Libre, one of Mexico’s most popular online marketplaces, reports that online sales of new cars increased by 26% during 1H23. Nonetheless, the online automotive sector still faces several challenges in Mexico and South America. 

According to data from Mercado Libre, during the first half of the year, pickups and SUVs represented the vehicles with the highest in demand growth among online shoppers, with 63% and 39% respectively. Likewise, the most searched brands on the platform were Ford, Volkswagen and Nissan.

During that period, online demand for used cars also grew by 7%. The most searched models were those between five to nine years old, accounting for 37% of the preferences, followed by four-year-old models at 34%. SUVs were also the most requested segment, making up for 43% of 
sales.  

The results shown by Mercado Libre are similar to those published by AMDA. The latter reports that during 1H23, over 633,000 new cars were sold nationwide, representing an increase of 22.1% compared to 2022.  Analysts point out that these positive numbers suggest that Mexicans are increasingly willing to buy vehicles online. 

Despite these promising figures, the regional automotive e-commerce sector still faces several obstacles. Many customers remain skeptical about purchasing vehicles online due to concerns about quality, authenticity and after-sales service. Another challenge is the low levels of digital literacy among the population, given that many people still lack the skills to navigate online platforms. To overcome these obstacles, automotive companies need to invest in building robust and transparent online platforms as well as improving their user-friendliness to  improve confidence among their clients. 

According to the Automotive World online portal, up to 25% of global auto sales are expected to occur fully online by 2025. In this regard, a report by Grand View Research showed that the global automotive e-commerce market is expected to reach earnings of US$27.5 billion this year, with South America being one of the key growth drivers.