The FINANCIAL — Mexican auto production returned to its growth track in August, after hitting a rut in July, with output of cars and light trucks rising 7.7% from a year earlier, the Mexican Auto Industry Association said on Spetember 7, according to Nasdaq.
August production of 292,271 units was a record for the month and brought output for the January-August period to 2.27 million, the association said. A string of record months had been interrupted in July when output slipped 2%.
Both export demand and new-car sales in the domestic market supported production in August. Exports rose 3.5% from a year earlier to 234,668 units, as an 11% increase in shipments to the U.S. and 53% rise in exports to Europe offset lower exports to Canada, Asia and Latin America.
Sales of new cars in Mexico remained positive, up 7.9% from a year earlier at 112,098 in August, although the growth slowed from the double-digit rates in previous months. Just under half the new cars and light trucks sold in Mexico are assembled locally, and the rest are imported.
Banorte estimated August output was up 6% from July after adjusting for seasonal swings, while exports were 0.1% higher and domestic sales down 1.9%.
The increased output could mark the start of a pickup after a sharp slowdown in the second quarter, Banorte said in a report.
The auto industry is Mexico’s principal manufacturing sector, and its exports have compensated for the decline in oil exports. Auto exports totaled $44.1 billion in the first half of the year, compared with petroleum exports of $12.8 billion, the auto association noted.
Mexico registered a trade deficit in petroleum of $4.1 billion in the first half, while the auto industry racked up a trade surplus of $26.5 billion.
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