Growth in Mexican automotive production is impressive in first half of 2015
In spite of world economic volatility, Mexican automotive production moves forward.
During the first half of 2015, Mexican automotive production grew at an 8.6% clip above that registered over the same period in the previous year. This boost in output exceeded gains registered by competitors such as China, Germany and India, as well as by Mexico’s closest rivals in this industrial sector: the United States, Japan and South Korea.
Contrary to expansion, South Korea suffered a setback of .9% in its production volumes of light and passenger vehicles. Only one country, Spain, outpaced gains made in Mexican automotive production during the first half of this year.
Mexican automotive production has steadily assumed a position of greater prominence on the world stage over the last several years. Most notably, the country’s industry displaced Latin America’s largest nation, Brazil, as the world’s seventh most prolific producer of light passenger vehicles. With 2015 just entering its third quarter, the Mexican automotive industry continues to maintain this position.
As far as the future is concerned, the leadership of AMIA, the Mexican Automotive Industry Association, has expressed the expectation that Mexican automotive production will reach and exceed four million units by 2018, and will ascend to production levels that are higher than five million vehicles by the year 2020. Mexico’s first half 8.6% year over year growth was only bested by the 12.8% that was posted by Spain. In recent years, the Iberian nation has been the beneficiary of significant investments that have been made in its automotive sector’s production capacity. This includes a US $2.6 billion dollar capital injection made by Ford to expand its Spanish operations to build six new models, up from its current four. Much like Ford’s Mexican automotive production, 80% of Spanish produced vehicles are destined for export markets.
Although Mexican automotive production, and that of Spain, grew at a healthy pace during the first half of 2015, other passenger vehicle manufacturing nations did not fare nearly as well. China, the world’s largest automotive manufacturer had a production increase of a modest 2.6%, while the US and Germany grew at 3% and .6% percent respectively. Japan saw its automotive production output fall by 8.2% during the period under consideration. Among automotive manufacturing nations that saw double digit production drops occur between January and June 2015 are: