Mexico City, USA
The Mexican
Automotive Industry Association (AMIA) mentioned that the third wave of
COVID-19 had deferred efforts by the Mexican automotive industry to fix the
semiconductor chips shortage. The third wave is expected to further lead to a
low level of vehicle production in Mexico this year.
Fausto Cuevas,
Head, AMIA, revised the estimated outlook for the production of vehicles and
exports. The Mexican Automotive Industry Association (AMIA) had earlier
estimated a 12% increase in vehicle production. But now, post the third wave of
COVID-19, the estimated outlook has been revised to the same levels recorded in
2020.
Cuevas mentioned
in a news conference that if the semiconductor shortage remains the same as it
was in July, the end of the year scenario will be the same as the volume
produced in 2020.
AMIA added that
the coronavirus pandemic led to an increase in demand for semiconductors
worldwide. Several sectors other than the auto sector increased their usage of
semiconductors which is now leading to complications. The supply of
semiconductors is still low because of this reason.
The auto production
in Mexico fell 26.5% for the month of July 2021 when compared to July 2020. The
exports also dropped to 23.6%.
Source – Reuters
Image Source: Photo by Lenny Kuhne on Unsplash
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