Motor industry output and exports in Mexico rose in September, showing some recovery after months of weakness as US stocks thinned and easier access to credit enticed local buyers into showrooms.
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According to Reuters, the Mexican Automotive Industry Association (AMIA) said production reached 147,209 vehicles in September, up 7% year on year.
Exports, most which go to the United States, rose 22% to 113,673 units.
Reuters noted that the figures showed that previously swollen US stocks which had stemmed the flow of imports from Mexico, were thinning, increasing demand.
“Most of the rebound in auto production in September was driven by stronger US demand,” David Franco, a Mexico-based analyst for JPMorgan, reportedly said in a research note.
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By GlobalData“In all, this confirmed that the inventory correction phase during most of the first half is over and allowed auto makers (in Mexico) to fill US orders,” he said, according to Reuters.
AMIA reportedly said production got a major boost from local demand, too.
According to Reuters, the association said the industry sold 91,078 vehicles in Mexico in September, 12.1% more than during the same month last year, thanks to Mexico’s stable economy, easier access to credit and an abundance of new models.
Output for January to September was down 2% to 1,123,718 vehicles and exports over the first nine months of the year were off 3.9% to 803,326 units, the report said.
