Mexico’s car industry, Latin America’s second-biggest, saw sales rise 3.3% to 1.13m units last year, as the country’s continued economic stability boosted credit purchasing, just-auto has been told.
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According to Cesar Flores, president of automobile trade group Asociacion Mexicana de la Industria Automotriz (AMIA), Mexico’s healthy economic environment has brought lower interest rates and better credit terms for consumers, increasing their purchasing power.
Mexicans can now buy many car models with 24, 48 and 60-month interest-free credit instalments, something that was unthinkable three years ago, Flores noted.
“Consumers are seeing this economic stability… and people with stable jobs are taking these [offers],” Flores said, adding that 70% of vehicles are now bought with loans, up from 8% in the late 1990s.
Flores added that 2005 was a breakthrough year for Mexican car exports, which rose 8.4% to 1.18m units after failing to grow since 2000. Car production leapt 6% to 1.607m units, he said.
GM, Nissan, Ford and Volkswagen continued to lead sales by volume, Flores said, adding that Nissan’s Tsuru sedan was last year’s best-selling vehicle.
“It was remodelled, and it’s well known for its price/performance benefits,” he noted.
Honda, Toyota and BMW saw the biggest sale gains, with volumes rising 29%, 48% and 23%, according to Flores.
Despite its heavyweight status, Volkswagen saw sales fall 12.5% last year, as competitors launched a slew of models (such as Hyundai’s Atos and Toyota’s Matrix) that eclipsed its stalwart Polo, Pointer and New Beetle.
Seat sales also fell 7% as the rising euro forced dealers to raise prices, driving consumers to cheaper alternatives, Flores added.
Ivan Castano
