Mexico May Be Latin America’s Largest Carmaker This Year

Mexico could surpass Brazil in 2014 as Latin America's largest vehicle producer for the first time in 12 years, says Bloomberg News.

The news service notes that Mexico ouproduced Brazil in January-May. Market analyst IHS Automotive says the gap appears likely to continue at least through this year, thanks to strong U.S. demand for Mexican-made vehicles and a 14% slump in auto production in Brazil.

Vehicle output in Mexico rose 7% to 1.31 million vehicles in the first five months of 2014, according to industry group AMIA. In Brazil, production over the same period totaled 1.27 million units, says trade group ANFAVEA.

IHS projects Mexico's full-year vehicle output will reach about 3.2 million units, marginally ahead of Brazil. market forecaster LMC Automotive calculates Mexico won't surpass Brazil until 2016.

Certainly the momentum is in Mexico's favor. Economists have estimated the Mexican and Brazilian economies will expand this year by 2.8% and 1.3%, respectively.