Car Sales Plunge in Mexico

Demand for new cars in Mexico plummeted 18% to 158,700 units in December, according to the Mexican Automobile Distributors Assn. (AMDA).

Sales fell for the market’s four largest players. Deliveries shrank for Nissan (-26% to 35,000 units), General Motors (-30% to 29,700), Volkswagen (-4% to 22,700) and Toyota (-10% to 13,400).

AMDA blames the slump on uncertainty about the outcome of talks to revamp or abandon the North American Free Trade Agreement. Observers note that a looming presidential election and shifting domestic political currents also have contributed to consumer uneasiness.

Mexico’s full-year domestic sales shrank 5% to 1.53 million units in 2017. The downturn was led by Nissan (-9% to 364,600 units), GM (-16% to 258,500) and VW (-5% to 233,900).​​​​​