Commercial vehicle sales in Mexico are expected to hit a record high in 2024, according to Reuters

MEXICO CITY (Reuters) – Sales of commercial vehicles in Mexico could hit a record this year, the Mexican Automobile Dealers Association (AMDA) said on Wednesday.

WHY IT’S IMPORTANT

Mexico exported $593 billion worth of goods in 2023, much of which was transported overland using trucks or trailers. Flows of goods across the U.S.-Mexico border also made the countries one of the largest trading partners last year.

Mexico is experiencing a boom in manufacturing, with multinational firms bringing their operations closer to the products’ final destinations, often in the US. This is often referred to as “nearshoring”.

KEY QUOTE

“As we know, nearshoring represents a unique opportunity for the development of Mexico, and because of this it is important to guarantee the best conditions of stability, infrastructure and coordination to stimulate the supply chain in the country, which in turn will stimulate employment and economic growth”, said the head of the National Association of Bus, Truck and Tractor-Trailer Manufacturers (ANPACT), Rogelio Arzate.

CONTEXT

In August, Volvo ( OTC: ) announced it would build a $700 million plant in the northern Mexican city of Monterrey to make heavy trucks. The company cited logistical efficiency and the benefit of being able to sell vehicles in Mexico, Latin America and the southwestern and western United States from the site.

BY NUMBERS

An estimated 56,592 commercial vehicles will be sold in Mexico this year, according to AMDA, surpassing the record set in 2007 with 53,300 sales.

The new record would be nearly 11% above 2023 sales.