Mexico - Decrease in the heavy vehicle market in August 2020: retail sales back -26.4%

SEPTEMBER 15, 2020
Mexico - sale of heavy vehicles

• IN CUMULATIVE TERMS, THE HEAVY VEHICLE MARKET HAS A 41.35% DECREASE

• THE MARKET SEGMENT WITH THE GREATEST AFFECTION SO FAR IN 2020 IS TRACTOR TRUCKS, WITH A REDUCTION OF 6,364 LESS UNITS

• URGENT TO MODERNIZE TECHNOLOGICAL INFRASTRUCTURE OF SCT IN ORDER TO TAPE BACKGROUND IN ISSUANCE OF FEDERAL PLATES

Drafting AMDA

The retail sale of heavy commercial vehicles during the month of August 2020 was 2,270 units, which represented a decrease of 26.42% compared to August 2019, equivalent to 815 units less. In the accumulated period from January to August 2020, 16,624 units were sold, which represented a fall of 41.35% compared to the same period of the previous year, equivalent to 11,718 fewer units, explained the Administrative Register of the automotive industry of heavy vehicles prepared by the National Institute of Statistics and Geography.

Of the 13 brands that reported results, only four obtained positive results in August: Hino (10%), Kenworth (8.2%), Mack Trucks (10%) and Man Trucks and Bus México (100%).

In the accumulated figures until August, only one brand had progress: Hino with 6.4 percent.

"The retail market for heavy commercial vehicles in our country faces structural limitations, in addition to the situation caused by COVID-19 that deepened the economic crisis," said Guillermo Rosales, Deputy General Director of AMDA.

Investment in transportation equipment has been decreasing steadily, as evidenced by the 25.3% decrease in the annual comparison to June, derived from the drop in business confidence in the transportation sector according to the Business Confidence Indicator published by the INEGI for the month of August that refers to an annual deterioration to August of 29.5%, adding nine months of consecutive fall, which inhibits economic growth in the short and medium term.

According to the opinion of various distributors of heavy commercial vehicles consulted by AMDA, in addition to the structural factors that inhibit the market, in the short term one of the factors that is having the greatest impact on the contraction of sales is the delay in the issuance of plates for federal motor transport by the SCT.

In this regard, the authorities of the Federal Autotransport General Directorate have reaffirmed their commitment to expedite the elimination of the delay caused by the forced closure of face-to-face procedures in the offices of the agency due to the COVID-19 pandemic.

In this context, the AMDA has reiterated the urgency of modernizing the technological infrastructure of the SCT to make more efficient use of the Internet.

Source: AMDA

Want to know more about our services?