Mexico’s commercial truck market booms amid recession concerns

25 Aug, 2019 | posted in: News | 0
Mexico’s commercial truck market booms amid recession concerns

Mexico’s production of heavy duty trucks, tractor trailer trucks, and buses over the first half of 2019 increased more than 36 percent from the first half of 2018. Data published by Mexico’s National Association of Bus, Truck and Tractor Truck Producers shows that Mexico (ANPACT) manufactured 104,214 such vehicles in the stated time period.

A rising demand from the United States accounts for most of the increased production. From January to June, Mexico exported over 84,000 commercial trucks and buses, up 30 percent from the same time period last year. Most of these vehicles were shipped to the United States.

While the numbers are promising, ANPACT President Miguel Elizalde said it’s important to exercise caution in view of the general state of Mexico’s economy.

“The cumulative figures continue to indicate significant growth during the first half of the year, both in production and exports,” he said, according to Freight Waves. “However, both items may be subject to an eventual slowdown of the economy, so it is necessary to have the structural conditions for the domestic market to begin to be an engine that boosts production.”

Analysis by Mexico’s National Institute of Statistics and Geography (INEGI) found that the country’s economy has stagnated and may be headed toward recession, reporting that GDP “registered no change in real terms in the second quarter of 2019.” Moreover, domestic sales of new commercial trucks dropped 50 percent in the month of July.

In other words, the commercial vehicles market in Mexico is performing well in spite of a general economic slowdown. Truck manufacturers the world over will certainly take heart from that.