[Auto] Luxury cars 'roll' to the worst year in their history

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Between January and November 2021, 25,901 premium units were marketed in the country, 9% less than that reported in the same period last year. 

In 2020 due to the health emergency, the sale of these units plummeted 32.4%.

 

Buying a luxury car in Mexico, for those who can access one because they are units with a minimum value of half a million pesos, was a reason for fun and enthusiasm, but with the covid-19 coronavirus pandemic, the trade of this type of units simply "reversed" the largest since the industry has been registered. Between January and November 2021, 25,901 premium units were marketed in the country, 9 percent less than that reported in the same period last year, the lowest volume reported by the sector since the National Institute of Statistics has data and Geography (Inegi). Prior to this, in 2020 due to the health emergency, the sale of these units plummeted 32.4 percent, its biggest drop since the economic crisis of 2009. 

“It is not the same as before, people went to any agency and there was an interesting stock that they compared between agencies and brands. Today it is not the same, the stock is already much smaller, "said Michel Vázquez, BMW San Antonio sales manager.

This counts because the shortage of semiconductors, like the increase in inflation, limited the supply of cars and reduced the demand for them. "What also influences the result of higher-value automobiles is that there is a decrease in the debt and spending capacity of a good part of Mexican consumers," explained Guillermo Rosales, executive president of the Mexican Association of Dealers of Automotive (AMDA). Mercedes Benz is the second best-selling premium car brand in Mexico with a 26.8 percent share; Despite this, its sales volume between January and November of this year fell 1.3 percent compared to the same period in 2020. Sales of brands such as Infiniti also fell, with 18.4 percent; Porsche, 4.4 percent; Acura, 9.1 percent; and Lincoln, 5 percent, which were partially offset by a 10.4 percent increase in sales from the BMW Group. 

 

“In this industry the issue of financial volatility is very important, we have seen different behaviors in the general markets and this probable instability generates uncertainty. Another important factor is the issue of national security, which is relevant for our consumers, ”said Guillermo Ordóñez, marketing manager of Maserati, an Italian manufacturer of luxury sports cars. Only in November 2021, 1,723 luxury cars were sold in Mexico, almost 10 percent less than in previous October, in addition to being the worst month in the industry since May 2020, when agencies were barely opening after two months of closure by confinement. 

"The Mexican market is very sensitive to price, it demands and demands a lot to be able to have access to these vehicles and that many times punishes or demands that greater efforts be made with respect to other markets that have better wealth," said Gerardo San Román, director of the consulting firm Jato Dynamics for the Latin American region. Toyota Prius, the best-selling hybrid vehicle in the country, is in turn the largest share among luxury cars, representing 16 percent of the total segment market with 4,144 units; however, by volume sold it fell 8 percent. 

The second best-selling car is Toyota Camry with 2,770 units; It is followed by Mini Cooper with 2,599, Dodge Charger with 1,581 and Audi Q2 with 1,574. Of the total cars sold in Mexico, luxury units represent 2.8 percent of the total market in 2021, a lower percentage than in 2020 when it was 3.4 percent. Simplification From the perspective of San Román, from Jato Dynamics, the obstacles to the manufacture of luxury vehicles also led companies to simplify their production lines, which in the same way had an impact on the supply and with it their levels of commercialization.

You are also seeing a simplification of the lines, for example, in many ways you begin to see that there are not so many versions or so many different engines or what we call the powertrain between different models or within the same model you find that they all come with the same power plant, so that greatly simplifies both the processes and also the offer that you are simplifying ”, he added. Rosales, from the automotive distributors, agreed on the above, who asserted that the brands in the segment were aligned with the trend on a world scale: to make the best use of available resources, thus allowing supply in other markets where they have a presence.

On the other hand, for Vázquez, from BMW, companies can observe a greater sales potential in other markets compared to the Mexican, such as the United States, which could represent greater profitability, which leads them to prioritize other destinations to send their merchandise before to our country. He added that the waiting time for a new vehicle, which if it used to be weeks now is up to six months, is another factor that has affected the mood of consumers. Rosales considered that by 2022 the participation of this segment will be at levels similar to those of this year, since supply problems will continue at least in the first half, in addition to the fact that the purchasing power of consumers will slowly recover. 

 

Link: https://www.milenio.com/negocios/autos-de-lujo-ruedan-al-peor-ano-de-su-historia