Mexico reaches new record for truck production, exports during July

During the first seven months of the year, 124,220 heavy-duty vehicles were manufactured, an increase of 30.47% compared to the 95,209 units produced during the same period last year, according to ANPACT.

Officials with ANPACT said 2019 is shaping up to be the best year for exports of Mexican-made trucks since 2015, when 117,239 units were produced.

Elizalde said while exports of Mexican-made trucks remain positive, Mexico’s domestic truck market is faltering.

“Although the accumulated figures are favorable, the production figures – have begun to be affected by the drop in sales in the domestic market,” Elizalde said in a release.

Domestic sales of heavy-duty commercial trucks during August fell 61.2% to 1,668 units, compared with 4,301 units sold during August 2018, according to ANPACT.

“The fall of the local market is mainly due to uncertainty regarding the availability of ultra low sulfur diesel (ULSD), which is inhibiting the growth of domestic fleets,” Elizalde added.

In July, the Mexican government implemented a new rule requiring pumping stations to sell ULSD. However, distribution of ULSD to gas stations has been slow as Pemex – Mexico’s state-run oil company – continues producing high-sulfur diesel.

Another part of the new country-wide law requires  truck manufacturers to only import, make and sell ULSD-run trucks starting in January 2021. However, according to a study from ANPACT, 20% of the pumping stations in Mexico still do not have ULSD.

“There are regions where the fuel is nowhere to be found,” Elizalde said according to a report from Reuters. 

Elizalde said the government needs to extend the period where trucks may still use Euro VI and EPA07, the current fuel standards in Mexico.

Truck and bus makers “would need 18-24 months to prepare factories, distribution chains, stores and sales forces for the change,” Elizalde said.