Uncovering Mexico
Jeremy Schwartz is the Mexico correspondent for Cox Newspapers. He is based in Mexico City.What's on this page?
The entry titled "Low gas prices = SUV boom in Mexico."
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Home > Uncovering Mexico > Archives > 2008 > June > 20 > Entry
Low gas prices = SUV boom in Mexico
Do high gas prices change consumer behavior? A comparison of American and Mexican car buying trends seem to give a resounding yes to that theory.
In the U.S., where gas has topped $4 a gallon, SUV sales have dropped dramatically (pickup sales fell 36 percent and large SUVs fell 42 percent in May, according to Bloomberg). Meanwhile in Mexico, where subsidized gasoline costs about $2.70 a gallon for regular unleaded, sales are spiking. SUV sales have jumped about 5 percent in the first months of the year, while sales of practical, high gas mileage compact cars fell 2.5 percent.
“The gasoline subsidy is benefitting high (gas) consumption autos and that’s why we aren’t seeing demand behaving the same way as in the United States,” Jose Gomez Baez, president of the Mexican Association of Automobile Distributors told El Universal.
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By Kirk
June 20, 2008 2:25 PM | Link to this
You should really read your links. The law says only cars that are exactly ten years and old can be imported. Not anything ten years and newer.
By Jeremy Schwartz
June 21, 2008 11:13 AM | Link to this
Kirk, you are absolutely correct, Mexico now restricts auto imports to model year 1998 ONLY and not 1998 and above as I wrote. Truly one of the stranger Mexican laws on the books. The auto dealers association pushed for it saying importing newer cars was unfair competition. So it looks like Mexico won’t be flooded with the U.S.’s unwanted SUVs after all - unless they’re from 1998. Please note the incorrect information has been removed. Thanks for the headsup.
By nat bostwick
June 21, 2008 12:14 PM | Link to this
1998 cars only can be exported to Mexico. 1998 pickups and earlier can be imported, but only by Mexican citizen. I don’t know if SUVs are considered cars or trucks. There are fees and thousands and thousands of immigrants are doing it as we speak.
Nat