Shortage and regularization of chocolate cars hit the automotive industry – El Financiero

In December, 97 thousand 365 were sold in Mexico cars, which meant a fall of 6.8 percent per year and the lowest volume for the last month of any year since 2009, when 91,961 units were placed, reveal data from INEGI.

In addition, when making a comparison with respect to their pre-pandemic level, the sales Automotive companies in the last month of the year were 25 percent below December 2019, due to continuing adverse conditions related to weak domestic demand and the effects on production automotive.

In an interview with El Financiero, José Zozaya, executive president of the Mexican Association of the Automotive Industry (AMIA), explained that the contraction is due in part to the shortage of semiconductors, the lack of natural gas supply in some regions of the country and the crisis global logistics caused by the health emergency.

“Well, yes, we see the end of a year not as optimistic as we had hoped (…) We are going to come out with sales very similar to 2020, which was a terrible year. Due to the force of the pandemic, the assembly plants were practically closed for two full months. In 2021 there was no closure of plants and we closed almost the same (as in 2020) and that gives you an idea of ​​how complicated the production, sale and distribution of vehicles”, Assured Zozaya.

He added that the regularization of chocolate cars also affected the car sales new during December, as well as logistics problems in some ports around the world.

Cumulatively, Mexico closed 2021 with the sale of one million 14 thousand 680 vehicles, which meant an increase of 6.8 percent compared to the 950 thousand 63 units placed during 2020, the year in which the health emergency hit the whole world, but still 23 percent below the million 317 thousand 931 units that were sold during 2019, that is, before the pandemic.

Despite the problems of the lack of inventory, the industry planned to end this year with a volume of sales of one million units, which meant that they managed to place 14,680 additional units than expected.

However, excluding 2020 due to the COVID pandemic, the volume would be the lowest for a whole year since 2012, when 988 thousand 42 units were placed.

“The result for the month of December still reflects the deterioration of the market, marking the sixth negative rate of 2021 and the fourth consecutive decrease after the previous six months of continuous advance. Although it has shown an improvement compared to the immediately previous month, these results still reflect a restriction due to the lack of inventory, which has generated significant impacts on the supply chains of various industries ”, commented Guillermo Rosales Zárate, executive president of the Mexican Association of Automotive Distributors (AMDA).

The AMDA highlighted that the 97 thousand 365 units sold in December, meant an increase of 14 thousand 536 units sold against the month of November 2021, which meant an increase of 17.5 percent.

The AMDA and AMIA released the report of total new light vehicle sales by brand, where Nissan ranks first with a 20.1 percent share.

The three challenges of the automotive sector this year

For AMDA and AMIA, the main challenges for companies in the sector this year will be the increase in prices, the shortage of semiconductors and the lack of inventory that inhibits the vehicle sale and makes production and assembly more expensive.

“We have had high inflation and this affects the costs of everything and obviously the automotive industry is no exception to it. So, obviously, each individual shipowner will be very vigilant of this circumstance ”, warned José Zozaya, president of the AMDA.

Regarding the issue of chip shortages, he explained that “perhaps for the second semester we will see something more stable in the supply of semiconductors.” However, he said that it will be until 2023 when vehicle production stabilizes.

For his part, Guillermo Rosales Zárate, executive president of the AMDA acknowledged that this year the forecast of high uncertainty continues regarding the level of supply and availability of the product in the market, so that the sales expectation for 2022 is expected to be reach one million 39 thousand 375 units, that is, an advance of 2.4 percent percent.

“The main factor continues to be the lack of inventory, as well as a high level in the price indices, both the general one with a rise of 7.45 percent, and of vehicles with an increase of 8.68 percent in annual comparison with data for the first half of December 2021 ″, detailed the AMDA.


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