Automotive

COVID-19 will have a negative impact on vehicle sales through 2020 due to lockdowns and economic contraction. The worst impact is likely to be felt in 2Q.

In the last 25 years, the Mexican automotive sector has been a success story. The sector (which includes auto parts) is of great importance for the Mexican economy.

The automotive market was unable to recover from the sharp fall in 2018 due to the exchange and financial tensions that occurred during 2019, the loss of purchasing power and a significantly astringent monetary policy.

Solid but stable new vehicle sales through 3Q19. A robust supply of “off-leasing” units and access to credit support sales of used vehicles. Consumer credit remains healthy, although delinquencies keep growing.

We maintain our 2018 vehicle sales growth projection (5.1%) despite the fact that the accumulated annual increase to July has been lower. The automotive fair and the improved performance of consumption in the second half of 2018 will boost this growth. The momentum of sales in 2019 will be even greater.

This presentation addresses the following topics: the Colombian automotive market: current characteristics and determinants of demand; recent evolution; projections for 2018-2019.