Yes, they are selling in the U.S. and Canada in great numbers, but the Mexican market still likes cars, LMC finds
By Gary S. Vasilash
Although SUVs (yes, including crossovers under that omnibus name) continue to proliferate in the U.S. and Canadian markets, turns out that things aren’t quite the same in the other USMCA country, Mexico.
According to LMC Automotive, while SUV sales surpassed those of cars in Canada in 2015 and in the U.S. in 2016, in 2020 cars outsold SUVs in Mexico. And not just by a little.
The LMC data show that cars outsold SUVs by more than 2:1.
That said, there is growth in SUV sales in Mexico notes LMC Americas Vehicle Sales Forecasts analyst David Oakley, but there is an issue: “The overarching obstacle is cost, with SUVs still carrying a larger price tag than many high volume cars.”
Complicating matters for Mexican consumers is the fact that Ford and Chevrolet have pretty much given up on cars, about which Oakley says, “these brands seem to have jumped the gun with regard to Mexico’s readiness for such a shift.”
Although it is estimated that cars and SUVs will reach parity in sales by 2030 in Mexico, there are still several years of sales between now and then, sales that will probably go to brands like Hyundai and Nissan.