Mexico domestic sales of cars may rise to over 1 million units this year as the economy proves resilient and consumer confidence picks up, the nation’s car dealership association said.
Sales of cars and light trucks may reach as much as 1.02 million units this year, up from the previously forecast 880,000 units, Guillermo Rosales, the director of government relations at the association, or AMDA, said today in Mexico City. Domestic sales rose 11.4 percent in July from the same month a year earlier to 76,376 units, AMDA said. Total sales came to 905,886 units in 2011, according to data compiled by Bloomberg.
Mexico’s auto industry is booming as both vehicle production and exports reached their highest levels in the first seven months of the year for any January to July period, said the nation’s Automobile Industry Association, or AMIA. Domestic sales are picking up as banks grant more loans and the economy grows faster than the 3.3 percent originally estimated by Congress at the start of the year, AMDA’s Rosales said.
“A cycle of better economic performance, better confidence on the part of the consumer and more disposition by banks to grant loans are contributing to the results we’re reporting today,” Rosales told reporters.
The consumer confidence index rose last month to its highest since March 2008 after previously reaching a four-year high in April. Economists forecast gross domestic product to grow 3.71 percent this year, in an Aug. 1 central bank survey.
Vehicle production rose 17.7 percent to 238,146 units in July from the year-earlier period and exports climbed 5.8 percent to 2008,151 units over the same period, AMIA said. Both production and exports were the highest for any July on record, AMIA said.
July’s domestic sales fell 2.7 percent compared with 78,508 units sold in June, according to AMDA.
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