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The COVID-19 Virus May Cause Insufficient Supply to Car Manufacturers in Bajio
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2020-03-18
According to the market analysis and strategy director of Mexico Monex, Carlos González Tabares, many domestic and foreign automotive manufacturers located in Querétaro, Guanajuato, San Luis Potosí, Aguascalientes, and Jalisco show high demand for parts imported from China, and they may be greatly impacted by the outbreak. For example, many Japanese cars are assembled with parts made in China, so if the downstream manufacturers are impacted by the outbreak and reduce their demand for parts, the supply chain will be significantly impacted. The longer shortage in the upstream, the bigger impact on production. Although how much impact the coronavirus pandemic will make on the entire economic development throughout Mexico and the whole region still remains unclear, it is forecast that at least by the first two quarters of 2020 the economy in the region will face difficulties.
The area of Bajío is a main manufacturing cluster for Mexican car manufacturing and auto parts industries. According to INEGI, the production values respectively in Querétaro, Guanajuato, San Luis Potosí, and Aguascalientes in 2019 were around USD 4.4 billion, USD 19.4 billion, USD 8.9 billion, and USD 12.2 billion, which represent 25%, 50%, 50%, and 80% of the production values of the respectively mentioned States in Mexico.
Mexico car manufacturing
insufficient supply from China
Japanese manufacturers
halt production
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2020-03-25
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