RIO DE JANEIRO, BRAZIL – Mexico dropped one position as world producer of light vehicles during 2020, moving to seventh place. South Korea overtook both Mexico and India, due to the impact of the Covid-19 pandemic that forced plants to close for about three months, revealed the International Organization of Motor Vehicle Manufacturers (OICA).
The international body reported that global light vehicle production fell 16% during 2020, with the assembly of 78 million units, led by China with 25,225,242 vehicles manufactured.
“The 2020 results erase all the growth achieved in the last 10 years,” said OICA president FU Bingfeng, when presenting the global report on the automotive industry in the different regions.
In recent years, Mexico maintained its position as the world’s sixth largest vehicle manufacturer and aspired to surpass India and Germany with the new investments of automotive plants installed in the country, which would take advantage of the T-MEC (North American trade agreement) to sell to the United States and Canada.
During 2020, the Mexican automotive industry was one of the most affected by the impact of the pandemic; however, the lack of fiscal incentives and government programs to reverse the impact disrupted the industrial sector that generates the most foreign currency in Mexico, reporting a 21% drop.
According to OICA, China is the world’s leading producer, followed by the United States with 8,822,399 units; in third place is Japan, with 8,67,557 cars manufactured and in fourth place is Germany, with 3,742,454 units.
The country that surprised in the automotive Top Ten was South Korea, which although it recorded an 11% drop in production, managed to overtake both India and Mexico.
Source: El Economista