There will no longer be cars of less than 200 thousand pesos in Mexico

buy a New car It is the goal of millions of Mexicans. However, the outlook is not encouraging and it will be more and more expensive to buy a latest model. As proof of this, suffice it to say that currently in Mexico there is no car 0 kilometers with a value less than 215 thousand pesos and the trend is that the prices will continue to rise.

Due to the inflation and the shortage of raw material the Automotive industry has seen the need to increase its prices. However, not all of it is bad news for the consumer, since the reality is that the models available on the market increasingly offer more equipment and safety, so the value increases.

To better understand how the market is moving and what we can expect in the coming years, we are going to share some estimates from specialized organizations.

Goodbye “cheap” cars in Mexico

Until not long ago, the big brands of cars in the country they had an entry range whose value did not exceed 200 thousand pesos. However, the current situation, mainly derived from the pandemic of Covid-19, The panorama changed and the automakers made the decision to stop manufacturing their “cheap” models and bet on more modern and equipped generations.

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Image: Unsplash

To the foregoing, it must be added that, according to the consulting firm JD Power, the inventory of vehicles in the distributors of Mexico is lower than normal due to disruptions in the global supply chain.

In this sense, the Mexican Association of Automotive Distributors (AMDA) has been warning for months about the semiconductor shortage whose production was strongly affected by the health contingency and has not yet recovered. What’s more, the association estimates that the distribution of microchip it will not stabilize until 2023.

The problem with this element is that it is a key part for current and future vehicles. According to the consultancy KPMG the semiconductors and electronics are at the heart of innovation in the sector.

Due to the situation, it is estimated that Mexico stopped producing 60 thousand 902 automobiles between 2020 and 2021. It also stopped selling 303 thousand 251 as of 2020.

Although not everything is related to the semiconductors. The AMDA He has also expressed that there are challenges in areas such as supply chains; raw Materials such as steel, aluminum and plastics; delays in distribution and logistics; and increased costs in sea freight.

Finally, we must add the theme of inflation which, according to the association, was 8.6% for the Automotive industrythat is, greater than the one recorded by the basic basket.

For the above is that the automotive They decided to focus their attention on having available models that would mean a higher profit margin.

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Image: Unsplash

Also read: The 10 cheapest vans in Mexico

Expensive cars is also an advantage for consumers

Although the outlook is not encouraging, manufacturers of automobiles they point out that there is a positive side for buyers and that is that, with competition growing, it is necessary to offer better models to justify the rise in costs.

In this regard, according to JD Power, satisfaction with the purchase experience of a auto in Mexico it improved in 2022 from 869 to 876 (on a 1,000-point scale).

This responds to the fact that 9 out of 10 buyers of new vehicles in Mexico evaluate different brands before buying a auto and, in this sense, the experience with the distributor plays a relevant role.

Therefore, if you plan to buy a New car soon you can expect not only more equipped models but also a much simpler experience.

Finally we share with you that the cheapest car in mexico is he renault kwid with a price initial of 215 thousand 900 pesos. Other models with prices plus cheap of the market are: hyundai grand i10 for 230 thousand 200 pesos; dodge attitude for 235 thousand 900 pesos; nissan march for 245 thousand 900 pesos; Y Chevrolet Aveo for 247 thousand 900 pesos.

Also read: Nissan and Audi recall these cars for failures

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