According to Automotive News, sales of cars and light trucks set new records in Mexico in November and year to date as widely available credit and financing options helped automakers and consumers overcome rising interest rates and a weaker peso.
Auto sales jumped 23 percent to 154,616 vehicles last month compared to November 2015, according to the Mexican Automotive Industry Association and the Mexican Automobile Distributors Association.
For the year through November, auto sales rose by 19 percent at 1.4 million compared to the same period last year, the industry groups said late Thursday.
Guillermo Prieto, president of the distributors association, said the rise in interest rates and the slide in the peso against the U.S. dollar has yet to trickle down to consumers.
Auto loans remained at record levels and auto prices were stable, he said. The industry was on pace to sell a record 1.6 million vehicles for the year and on track, barring any shocks to the economy, to hit around 2 million by 2020.
Prieto estimated that sales next year could grow another 6.5 percent, although there are dark clouds on the horizon. They include the election of Donald Trump as president of the U.S. since he has been a sharp critic of the North America Free Trade Agreement that is critical to Mexico’s export-oriented economy.
“Without a doubt, there is uncertainty,” he said.
Trump’s surprise election has pressured the Mexican peso, now near record lows against the U.S. dollar, which has forced the Mexican central bank to hike interest rates to fight inflation as imported goods become more expensive.
About half of the cars sold in Mexico are imported.
by Laurence Iliff
more recommended stories
Why is Merida the undisputed best city to live in Mexico?
Merida has consolidated as the safest.
Biblical plague strikes Florida homes
Palm Beach Gardens, Fla. — A.
Tunnel to Arizona located in Nogales, Sonora
Sonora.- Authorities in Nogales, Sonora found.
Marijuana is still illegal in Mexico… but soon that will change
What is the very first association.
147 million pesos for remodeling and expansions in Chetumal´s airport
CHETUMAL, March 24th – With an.
Dreamer detained by ICE for six weeks
Selene Saavedra Roman, originally from Peru,.
Life in Merida becomes more expensive
According to the National Consumer Price.
Ancient Maya “Snake of the wind” appears only to shock tourists in Chichen Itza
Merida, Yucatan.- At around 14:30 hours.
Border Patrol detained nine-year-old US citizen for more than 30 hours on her way to school
US Customs and Border Protection officials detained.
Guadalajara attempts to set a new Guinness World Record for the world’s largest tequila tasting
A week-long celebration in the State.