CABO SAN LUCAS, MEXICO – Can the Mexican truck market become as large as the Canadian market? There’s no reason why it couldn’t, according to Gerhard Gross, president and CEO, Daimler Trucks Mexico.
“In my opinion, the Mexican Class 6-8 market in Mexico should be as large as the Canadian market. I think we will see (the current) gap close,” Gross told journalists gathered at a Daimler Trucks North America press event this week.
Gross pointed out that Mexico is growing faster than Brazil, one of the hottest economies in South America, and will outpace Brazil in terms of real GDP growth. He also said the Mexico’s low national debt to GDP ratio means the nation can afford to spend more on infrastructure projects, which are a boost to trucking companies.
Daimler Trucks Mexico is certainly taking advantage of the expected growth of the Mexican market, having reaching 28 percent growth in 2012, driven largely by the broad penetration in the beverage distribution industry. This figure is six percentage points above market growth (22 percent).
Daimler Trucks Mexico sales exceeded 5,419 units in 2011 and 6,950 units in 2012 in
Mexico. Class 6 and 7 are the fastest growing segments – for the medium-duty truck market – increasing sales by 75 percent and achieving 63 percent of market share, with a total of 1,489 vehicles sold throughout 2012, compared with 852 the previous year.
During 2013, the company expects to continue its upward trend in the beverage distribution industry, a market on the rise in Mexico, due to the renewal of their fleets.
Only 35% of Mexican trucks are 10 years old or less, compared to 56% for the US market. Particularly telling for the need of renewal in the Mexican truck market is that 37% of its trucks are more than 21 years old, compared to just 13% being of that age in the US.