For a few months the automotive manufacturing has been affected by the lack of semiconductors, which has led to assembly plants being stopped, production adjustments and delivery delays: now the delivery time of a new vehicle to consumers in the local market has reached between one and up to four months, according to sources consulted by MILLENNIUM.
According JATO Dynamics, a company focused on generating automotive intelligence solutions, the average waiting time oscillates in three months. For high-end cars, which require a greater number of components and technology, it can be up to four months, the same as for those imported from Europe.
Mexico has been the country of arrival for the factory of some representative brands of the automotive sector on a global scale such as Volkswagen, in Puebla and Guanajuato; BMW, in San Luis Potosi; Nissan, in Aguascalientes and Morelos, to name a few.
Of the total manufactured, between 13 and 15 percent is kept in the local market, the remaining percentage being exported mainly to USA and then to Canada. The effects on the supply chain have impacted in such a way that they have made this distribution even more noticeable.
“We are always used to having excess supply and less demand, but now things have been reversed. And what is that generating? That many brands instead of sending these units to the Mexican market send them to another market where their profits are better, “he said. Gerardo San Roman, director of JATO for Latin America, in an interview with MILLENNIUM.
The dosage of supply and logistics is affecting the Mexican market in such a way that from their perspective, there is more supply than demand. Among the changes that this panorama has brought, it stands out that the purchase is being more conscious and more thoughtful, since people are having more time when choosing which vehicle to buy.
Recent figures from National Institute of Statistics and Geography (Inegi) revealed that the number of light vehicles placed in the local market in October, which was 76,640 units, represented the lowest volume for this month in 10 years. At the same time, the figure was also the lowest monthly volume so far in 2021, in addition to representing an annual decline of 9.1 percent and a monthly decline of 0.4 percent.
The foregoing responds to the fact that the lack of stock is affecting the mood of consumers, since before there was a wide range of vehicle offerings and today the catalog is limited. The data indicates that the inventory of agencies and dealers is located between 30 and 70 percent of what used to be previously at this time.
Faced with this scenario, companies have had to orient efforts to deal with the lack of supply with various strategies. Brands have chosen to manufacture vehicles with fewer components in order not to see their stock reduced so much, while others, for example, in the schemes that contemplate that people change vehicles every two years, cars are being left for longer. to customers, since there is no availability of units.
The latest production data for the sector according to the Inegi, they state that 208,092 units were produced in September, which implied a decrease compared to the same month of 2020 of 33.30 percent and with respect to 2019 the decrease was 36.0 percent.
Pre-owned prices on the rise
David Placencia Barrera, president of the National Association of Dealers in New and Used Cars and Trucks (ANCA), expressed to MILLENNIUM that the lack of automotive inventory has brought greater interest towards the pre-owned and used vehicle market, however, this has also implied an increase in costs.
Responding to the law of supply and demand, he estimated that the price of pre-owned vehicles has risen approximately 30 percent compared to last year, which has also meant challenges and complications for people who are dedicated to the commercialization of this segment. .
“Right now there are no new cars, so the pre-owned is expensive and scarce … Let’s wait a few months to see how it behaves and how the market advances,” he added.
Repercussions on the foreign market
Fausto Cuevas, CEO of the Mexican Association of the Automotive Industry (AMIA)He said in a conference that as a result of the sector’s outlook and the annual fall in vehicle manufacturing in September, effects are expected both for production and exports for the end of this year.
He expected production to fall between 4.7 and 5 percent compared to 2020, which will imply a decrease of between 550 and 600 thousand units, thus adjusting its forecasts that the agency had at the beginning of the year, when it expected a positive growth rate instead negative.
Given this scenario, export forecasts were also adjusted downward, so he anticipated a contraction of between 3.8 percent and 4.2 percent annually in this item. In 2020, the number of exported light vehicles totaled 2 million 681 thousand 806 units, a figure that represented a decrease of 20.85 percent compared to 2019.
San Roman, director of JATO For Latin America, he pointed out that in exports, the waiting time for units manufactured in Mexico to reach the United States, which is its main market, is approximately three months, a similar period in which it takes vehicles to arrive in Canada , as a secondary market.
Of the units sent abroad, approximately 80 percent are destined for North America, between 10 and 12 percent for Europe, and the remainder for the Asian continent.