12122018Wed
Last updateFri, 07 Dec 2018 11am

Sharp dip in sales of new cars in Jalisco

The Mexican Association of Car Distributors (AMDA) blamed the dip on rising cost of automobiles and diminished purchasing power.

This transactional diminution is significantly higher than the national trend measured by the AMDA in the same period, which was 9.4 percent.  The result is that Jalisco, for 20 years third in car sales for the nation, has fallen to fourth place.  Occupying the first, second and third slots are, respectively, Ciudad de Mexico, Estado de Mexico and Nuevo Leon.

Another reason for the shift, according to AMDA National Director Guillermo Rosales Zarate, is an increase in interest rates. Citizens who would otherwise have taken out loans for cars have thought twice about the decision.

Nonetheless, AMDA Jalisco director Jorge Rodriguez is optimistic.  “What we’re seeing on the state level is due to the fact that [Jalisco] comes from a position of higher economic growth than that of the national average. It’s normal that the drop we’re experiencing should likewise be more significant.”

Rodriguez expects Jalisco to retake its position at number three in automotive purchases in the next few months.

Taking a longer view, however, the picture is more murky, Rosales noted, due to the complicated renegotiation of NAFTA.

“The uncertainty around [NAFTA] affects the economy as a whole, which in turn affects the automotive sector,” he said.

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