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The automotive sector improves its expectation of sales of new cars for 2020

Now the Mexican Association of Automotive Distributors, which brings together some 3,000 vehicle outlets in the country, foresees sales for this year of 964,400 units compared to the 922,000 estimated in early May, after better performance in June and July . It is a reduction in the fall estimate from 30% to 26.8%.

Month-to-month, sales have been improving consistently: 34,903 units were sold in April, 42,028 in May, 62,837 in June and 72,897 in July, according to Inegi data. The projection for the month of August is 81,112 new vehicles.

“We have seen that the dynamics of sales have taken a rather ‘U’ shape, so we have slightly increased our projection,” said the video conference Guillermo Rosales, deputy director general of AMDA.

The favorable behavior registered by the commercialization of vehicles is explained by the reopening in most of the territory of the operation of the sales floors, the strong incentives of manufacturers and distributors, preferential interest rates, attractive terms in the offers of financing and the satisfaction of lagging demand during the contingency. Additionally, fleet sales have shown a favorable performance.

“Virtually every brand is offering incentives. It is a significant effort by automotive corporations, which are decreasing their already punished profit margins in order to encourage the sale of vehicles that are in inventory, “says Rosales.

General Motors, for example, put its models at employee price and launched a down payment program for up to 200,000 pesos in the event of job loss. Kia announced this week a prime rate of 5.5% on some of its models, when the industry average is 13% to 15%.

“These are offers that I have never seen before,” says Gerardo San Román, director of the analysis firm Jato Dynamics, who has been following the performance of the sector for 20 years.

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