Having a populaton of about 105 mio. inhabitants, Mexico is the second largest market in Latin America, following Brazil, and one from the biggest markets worldwide. Mexico has managed a growth of its economic climate which these days is known as the Mexican miracle. Having a GDP per capita of 8343 USD and average monthly wages of 581 USD, Mexico has a good position amongst emerging economies.
Mexico includes a longstanding tradtion of car manufacturing. As early as 1930, cars (GM) had been assembled in Mexico. Mexico has no personal OEM, even though some automobiles are nearly observed as nearby. Today, with about 2 mio. passenger car manufactured each and every year, Mexico is one of the top car manufacturing places globally.
Mexico passenger car marketplace or compra venta de autos is characterized via a large, illegal inflow of used automobiles in the U.S. into Mexico. With closer ties from the Mexican using the U.S. economy, many automobiles are bought within the U.S. and brought to Mexico by individuals who in no way register these automobiles. Using the opening of used vehicle imports in the U.S. and Canada which was reversed beginning of 2008, the influx increased additional. The imports mainly occur within the Northern regions of Mexico for autos a la venta. The new car marketplace suffered in the inflow of used cars and declined more than the final years. Beginning from 2007, we expect a turnaround from the new vehicle marketplace, but not a fast increase. Even though the wealth from the population is growing, the typical Mexican still can not pay for a new vehicle and also the economic achievement can hardly make up for that bad impact of the utilized car imports or venta de autos mexico.
With offical used car imports being equal in numbers to new vehicle sales, the Mexican car parc is increasing quick, but over 1 mio. from 2006 to 2007 and additional on for that following years. Since a main share of the increase comes from utilized automobiles, there is an immediate impact about the aftermarket. Although for very inexpensive cars imported from the U.S. Mexican consumers will not be willing to invest substantial quantities of cash for vehicle support, but for higher-value imports they’ll. The increasing wealth of Mexican buyers particularly influences the behaviour concerning car service. We expect the aftermarket (sale of components) to grow at nearly 6% annually at constant prices over the next many years.
The distribution system for spare parts is going to organize, with nevertheless very few players acting on the really national level. Also, chain building in the parts shop and the service stations segment, although it began currently, still has a tremendous possible.
Financing of cars is widely used but there is still growth potential. With the average Mexican wages growing further, financing is the only choice for many Mexican to purchase a brand new car.