Sales Slump Sees Slight Improvement During Buen FinBy MBN Staff | Thu, 12/03/2020 - 14:36
Even though car sales picked up due to November’s special promotions, they are still significantly lower than 2019’s numbers. Read this and other stories in this week’s automotive roundup!
Car Sales Enjoy Buen Fin but Remain Significantly Lower Than in 2019
El Economista reported that Mexico’s Buen Fin sales boosted car sales in Mexico in November. It spurred notable growth of 13.3 percent against October 2020. Nonetheless, dealerships reported a 23.5 percent drop in sales in November of this year compared to the same month in 2019, selling 95,485 vehicles versus 124,792 cars last year, according to AMDA.
San Luis Potosi: Resilient Automotive Hub
San Luis Potosi has caught the eye of the global automotive industry, capturing significant foreign direct investment (FDI) during the first half of 2020. During 1Q20, San Luis Potosi and other four states located in the Bajio region attracted significant FDI, reported El Economista. San Luis Potosi prevailed despite the economic blows the COVID-19 pandemic dealt on Mexican industries during the months of early confinement in Mexico - April through June.
The Ministry of Economy reported that during 2Q20, San Luis Potosi received MX$612.4 million (US$30.3 million), placing it just behind Jalisco in FDI. During that period, San Luis Potosi saw large amounts of foreign capital, more than Mexico City, State of Mexico, Nuevo Leon and Jalisco, considered bigger economies.
Uncertainty: Enemy of Mexico's Automotive Industry
The automotive industry is a strategic sector for the Mexican economy and FDI is vital to its development. However, recent measures are raising questions regarding Mexico’s attractiveness as an FDI destination, including regulatory changes concerning outsourcing and USMCA.
Outsourcing is causing even more uncertainty among Mexico’s industries, which were already suffering from the COVID-19 pandemic. This can push away future investors and, as a consequence, damage FDI. “We should not destroy the quality and the image that Mexico still has as an attractive country for FDI,” José Zozaya, Executive President of AMIA, told Milenio. In his opinion, overregulation could drive investments away.
Kavak and Uber Join Forces
Kavak and Uber have announced that they are coming together in an alliance that will offer Uber drivers special deals to buy a car. This decision benefits both companies and Uber drivers, because it encourages more people to join the app and buy a car instead of renting it.
This alliance offers Uber drivers the possibility to buy a vehicle from Kavak through monthly installments starting at MXN$1,500 (US$74.73), with a zero percent down payment. Up until now, this deal was only made available in Guadalajara, Monterrey and Mexico City, reported Forbes.