Car Sales in Mexico Drop 7%

New-car sales in Mexico sagged 7% to 109,500 units in February, the Mexican Assn. of Automobile Distributors (AMDA) reports. It was the eighth straight month of year-on-year shrinkage.

But production rose 6% last month to 328,400 units, and exports jumped 11% to 276,000 vehicles, according to AMIA, the Mexican Automobile Manufacturers Assn.

Analysts attribute the domestic sales slump to consumer uneasiness about the outcome of talks to revise the North American Free Trade Agreement and the country’s upcoming presidential election. Demand also has been tempered by rising car prices, fuel costs and interest rates.

Domestic new-car deliveries last year climbed to a record 1.6 million in 2016 but slipped to 1.5 million last year, according to AMDA. But growing exports of cars and their components to the U.S. helped generate a record trade surplus for the country of $71 billion.