Automotive sector foresees a difficult 2023, but with improvements

In the midst of an environment complicated by the regulation of the Mexican government, the secondary effects of the pandemic and one economy affected by the recovery with approximation to a recessionthe automotive section installed in the country has increased its sales and forecasts a difficult 2023, but with slight improvements.

In interview with The Truth News, Guillermo Rosalesexecutive president of the Mexican Association of Automotive Distributors (AMDA), exposed for this year they expect to increase the number of new car sales by up to 6% compared to 2021, placing one million 80 thousand units.

For the following year, in a first forecast considering the difficulties of the market, they estimate to place 1,110,000 units in Mexico, which represents an increase of barely 2.8%.

“Since January 2022, the government decreed that vehicles can be regularized and this has encouraged more used units to be imported from the United States, but with poor security, compromise the safety of third parties, pollute more, and affect the value of cars in the market. mexican market.

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“The only beneficiaries are the criminal gangs that lead this business, and at the same time this has affected formal businesses,” said the executive.

In addition, he explained that the automotive sector faces important economic challenges due to higher general inflation throughout the country that affects purchasing power, increases in vehicle prices, delivery delays, higher interest rates and negative effects on the supply chain. supply that do not end up being solved.

In 2021 the waiting lists were four months. Rosales explained that now there is progress because there are already more semiconductors in the global automotive sector, but still the time to receive a new car in Mexico averages less than two months.

“With these conditions, the government has created a perverse chain, by also removing the verification of the physical and mechanical conditions of the cars, then auto insurance is not mandatory throughout the country, only on federal highways, but the National Guard does not demands, there is no verification scheme”, he explained on the subject of road safety”.

The sector estimates that for car sales to return to one million 600 thousand as in 2016, the highest level of commercialization, it should take at least another five years.

“We have not been able to meet with the president to discuss all these issues, then with the replacement in the Ministry of Economy there have been no approaches, the sector has been advancing on its own in a more complicated environment,” said Rosales Zárate.

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