Disrupted By The COVID-19 Pandemic, Car Production In Mexico Drops 2 Percent

Illustration of the production process in the automotive industry (Photo: Antara)

JAKARTA - Car production in Mexico fell by two percent last year compared to 2020, becoming the second consecutive annual decline.

The decline came as Mexico's flagship industrial sector struggled to cope with the shocks of the pandemic and a global semiconductor shortage, official data showed.

Auto output in 2021 fell to 2,979,276 vehicles from 3,040,178 the previous year, according to figures published by Mexico's national statistics agency (INEGI).

However, the industry saw a slight increase in exports, sending 2,706,980 cars overseas compared to 2,681,806 in 2020, an increase of almost one percent.

In December alone, production fell 16.51 percent while exports fell 17.31 percent, marking the sixth straight month of declines.

A global shortage of semiconductors in recent months has prompted automakers in Mexico and across North America to implement production cuts, limiting production.

In 2020, Mexico's car production slumped 20 percent compared to the previous year due to the pandemic's blow to the economy.

Mexico's top auto association AMIA predicts production will not return to pre-pandemic levels until late 2023 or 2024.