Weak Global Automotive Market in 2020 Brings Challenges to Mexican Car Manufacturing
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According to Reuters, Mexico reported its first car export drop of the past 10 years in 2019, which was down 3.4% in its export value. According to INEGI of Mexico, in 2019 the car production in Mexico dropped by 4.1%, a drop for the 2nd year in a row and the most significant decline margin since the financial crisis in 2009. Chairman of Mexican AMIA Eduardo Solis also forecast that by 2020 the car production in Mexico will drop to 3.5 million units and its export volume will drop to 2.8 million units.
The economy of Mexico relies heavily upon car manufacturing, however, due to the declining demand outside the U.S and according to the statistical data of AMIA, in the first 11 months of 2019 Mexico’s car export to the U.S. increased by nearly 5% despite the decline in other regions. According to the retiring Chairman of Mexican AMIA Eduardo Solis, the drop in Mexico’s car export was not relevant to the capacities of domestic factories in Mexico but the continuously stagnant global automotive market.