Large Number of Used Car Imports Has Harmful Effect on Mexico Automotive Industry Mexico News Daily
go to original October 18, 2014

Automotive dealers are hoping for better times following some developments regarding the import of used vehicles from the United States.

The federal tax administration, SAT, has decreed that vehicles to be imported must have ownership or registration papers that indicate the vehicle has been exported from its country of origin. In addition, the Supreme Court has ruled that regulations governing used vehicle imports are constitutional.

Exercising greater control over vehicle imports this year has been credited for a 16% reduction in in those imports between January and August. But in August alone, used vehicle imports plummeted 38%, from 63,764 to 39,826.

...The effect has been huge on new car sales. Mexico is producing record numbers of new automobiles but the majority are exported because of soft demand caused by the used imports.

New car sales are 50% below the potential, says Rosales. “There are eight new cars for every 100,000 inhabitants; that’s well below 19 in Argentina and 21 in Brazil, two countries with fairly similar socioeconomic indicators compared to Mexico.”

Read the whole article at Mexico News Daily

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