Leasing Gained Ground in Mexico’s Automotive Market in 2022

Sales of new light vehicles headed for the leasing market in Mexico grew 24.3% at the end of 2022, according to a report by the Mexican Association of Automotive Distributors (AMDA) and the Mexican Association of Vehicle Lessors (AMAVe).

Of the nearly 1.01 million new light units sold in Mexico during 2022, more than 53,000 were acquired by leasing firms for their clients, resulting in a slight increase by 0.6 percentage points as part of the total sales share.

Dealers sold 6,281 heavy units as assets of the lessors, representing 16% of the nearly 40,000 in total commercialized of heavy vehicles in 2022.

In a virtual press conference, AMAVe Manager Liliana Anaya projected an 18% increase in the acquisition of light units by association members in 2023.

AMDA President Guillermo Rosales agreed with the figures for leasing growth figures in Mexico, but said better conditions are required to improve leasing rates.

“In Mexico there is still a predilection towards buying through bank financing or automakers for vehicle ownership, and that opens up a niche opportunity for greater market participation”, Rosales said.

The AMDA has requested the Ministry of Finance and Public Credit to present an initiative that updates the levels to make the lease deductible; it is now capped at 200 pesos per day and has not been updated in 12 years.

That change, Rosales said, would impact the cargo segment, which has significant capital availability and which responds to leasing in a more agile way without decapitalizing the company.

The associations also reported that, between January and September 2022, purchases of hybrid and electric vehicles by lessors for their clients represented 4% of the total, with a decrease of -34.7% compared to the same period in 2021.