MEXICO CITY (Reuters) – Sales of commercial vehicles in Mexico could hit a record high this year, the Mexican automobile distributors’ association said on Wednesday.
Why is this important?
Mexico exported $593 billion worth of goods in 2023, most of which was transported overland using trucks or trailers. The flow of goods across the U.S.-Mexico border also made the two countries each other’s largest trading partners last year.
Mexico is experiencing a manufacturing boom, with multinational companies moving their operations closer to the final destinations of products, often in the United States. This is often referred to as “nearshoring.”
Main quote
“As we know, proximity transport represents a unique opportunity for Mexico’s development, and for this reason, it is important to ensure the best conditions for stability, infrastructure and coordination to strengthen the country’s supply chain, which in turn will boost jobs and economic growth,” said Rogelio Arzate, president of the National Association of Bus, Truck, Tractor and Trailer Producers (ANPACT).
Context
In August, Volvo (OTC:) announced it was building a $700 million plant in the northern Mexican city of Monterrey to produce heavy trucks. The company cited logistical efficiencies and the benefit of being able to sell vehicles in Mexico, Latin America, and the southwest and western United States from the site.
In numbers
56,592 commercial vehicles are expected to be sold in Mexico this year, according to AMDA, up from the record 53,300 set in 2007.
The new record will be about 11% higher than 2023 sales.