The National Association of Producers of Buses, Trucks and Tractors (ANPACT) reported that at the end of June 2024, 6,704 heavy vehicles (cargo and passenger) were sold wholesale in Mexico, an advance of 44.0% compared to sales of the same month last year, when 4,657 units were placed.

By segment, cargo vehicles represented 90.1% of sales with a total of six thousand 046 vehicles, this volume represented a growth of 56.9% vs. what was placed in June 2023.

When disaggregating this figure, it was revealed that fifth-wheel tractors continue to be the segment with the highest sales volume with four thousand 032 units. It should be noted that this figure represented an increase of 90.6% compared to what was sold last year when two thousand were sold. 115 tractor trucks.

For their part, class 8 trucks also experienced an increase in the placement of units at dealers, going from 962 in June 2023 to 1,290 in the same month of the current year, this figure meant an increase of 34.1 percent .

Equally positive was the performance of class 7 vehicles with an increase of 11.1%, going from 18 to 20 units in the comparison period. Class 5 trucks were also part of this positive streak, reaching 70 units in June, 2.9% above the same month of the previous year.

On the contrary, class 6 sales contracted 14.8% in the sixth month of 2024, totaling 294 units, this meant 51 units less than in 2023. This was the same case for class 4 cargo units that lost ground by go from 346 in June 2023 to 340 the same month of the current year.

Positive first semester  

The balance at the end of the first half of 2024 marked a positive trend by accumulating a growth of 7.2% in the commercialization of heavy vehicles (cargo and passenger) compared to 2023. From January to June of this year, 27,247 units were sold, of which of which 23,096 corresponded to cargo vehicles , which increased their sales by 8.5% vs. the first half of last year.

In the reference period, fifth-wheel tractors accumulated 48.0% of total sales of heavy vehicles (cargo and passengers), this meant an increase of 18.9% compared to the first half of 2023 when 10,999 fifth-wheel tractors were sold. .

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19.7% corresponded to vehicles made in China or 115,408 units.

This last volume represented a growth of 17,565 units compared to the same period in 2023, according to data from the Administrative Registry of the light vehicle automotive industry of the National Institute of Statistics and Geography (Inegi) .

By 2024, it is expected that Chinese manufacturers will bet on the commercialization of pick-ups in Mexico. To date, various brands are betting on launching at least one model of this type of unit, which would change the proportion of sales of the brands with the longest history in Mexico.

Eric Ramírez, Latam regional director of Urban Science , commented that the business model of Chinese vehicle producers is exporting to the largest number of countries in the world, with the exception of the United States and Canada. He explained that to date China has an availability of approximately three million vehicles that are destined for foreign markets.

“The strategy of Chinese original equipment manufacturers (OEM) is based on the design of new products with attractive commercial offers that add value to the product, whether with equipment, guarantees or acquisition facilities. Likewise, the versatility of fuel types,” he commented.

However, the learning curve of Chinese brands in terms of service and availability of spare parts has represented a challenge. In Ramírez’s opinion, this has been due to the rapid growth in vehicle sales that has experienced a crisis and certain shortages, however, to date many companies that manufacture parts for Chinese vehicles are already installed in Mexico and Latin America, which that offers supply capacity at the local level.

According to data from the consultancy AlixPartners, by 2030 the displacement of units of Chinese origin in the world will have a penetration of 20% in Mexico , 28% in the rest of Latin America, 12% in Europe and 39% in Africa.

This revealed that China continues to strengthen its position in the global automotive market. By 2030, it is projected that 72% of products made in China will be consumed by the Chinese themselves, while 33% of the global market will be absorbed by China. This trend reflects the country’s growing self-sufficiency and domestic consumption capacity.

In terms of production costs, China is the most competitive country in the world. “I doubt that any country can reach the costs of Chinese manufacturing , in the case of Mexico it is more competitive than the United States, Canada and Germany, and is probably on par with Brazil. However, it is behind India, Thailand, Korea or China. Although Mexico has extensive experience in vehicle production and the workforce in the automotive industry is recognized worldwide, today it is no longer such a globally competitive country,” Ramírez determined.

The specialist explained that a few years ago Mexico was a leader in competitiveness due to the cost of labor , however, this index has changed over the last decade; today this index is based on productivity. “There may be countries with higher labor costs, however, they may be more productive,” he indicated.

For example, in 2016, 56% of what  GM sold in Mexico was produced in Mexico, contrary to what happened at the end of 2023 when unit sales were concentrated 75% in automobiles made in China , leaving Mexico with 11% of the production. Ford  went from zero production in China in 2016 to 26% by last year. In turn, Stellantis closed last year with 8% of its sales with units of Chinese origin.

In conclusion, the Latam regional director of Urban Science indicated that the greatest beneficiary of commercial opening is the Mexican consumer, “he is the one who has everything to gain, because he is the one who will be stimulated with a new model, design, guarantee , competitive prices, availability of spare parts, etc.”

With information from Karina Quintero and Elizabeth Díaz.

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