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
MSC Cruises unveils safety protocols as return looms
MSC Cruises chief executive, Gianni Onorato,.
Video showing racist Florida woman harassing landscapers goes viral
Brandon Cordova and his landscaping crewmates.
Fuel theft, extortion, and kidnapping: “El Marro” wreaked havoc in Guanajuato for years
In Guanajuato, countless families have been.
Cyclone Isaias reaches Canada after killing at least five in the US
At least five people have been.
AMLO’s government will pay 450 million pesos to private television stations.
Following the announcement, the shares of.
On phase 1, data shows Novavax coronavirus vaccine is safe and elicits an immune response
A third US company has released.
Obesity epidemic could undermine effectiveness of a Covid-19 vaccine
Better eating habits, can save your.
Merida airport will not close even if Yucatan returns to red light
Currently, there is an average of.
Holbox hotels association members join efforts for a safe destination
HOLBOX, QUINTANA ROO (August 5, 2020).-.
Massive business closure in downtown Cancun
Businesses expect the situation to improve.