Background on the Mexican Automotive Market and AMDA
The Asociación Mexicana de Distribuidores de Automotores (AMDA) is a prominent organization representing automobile dealers in Mexico. As the thirteenth largest market for car sales, Mexico has a strong reliance on gasoline and diesel, with 99% of vehicles using these fuels. While the global trend leans towards electric vehicles, the AMDA acknowledges that combustion-based fuels still support the development of the automotive industry. The focus, according to AMDA, should be on utilizing higher-quality fuels rather than immediately transitioning to electric vehicles.
The Impact of Old Car Regularization
Between 2022 and 2024, approximately 2.558 million “chocolate” or obsolete vehicles were regularized in Mexico, accounting for 6.6% of light vehicles in the country by the end of 2024. This situation, according to AMDA, impedes progress towards transitioning to modern electromobility with less reliance on polluting fuels.
Contextualizing the Issue
These older vehicles, despite their age and outdated technology, have been entering Mexico either as second-hand imports or due to being deemed obsolete until a regulatory change allowed for “automotive smuggling” three years ago. While the world strives to produce more efficient vehicles, Mexico faces a growing stockpile of older cars that demand increased fuel consumption and emit more pollutants due to their outdated technology.
Statistics on Vehicle Regularization
In 2022, 1.047 million such vehicles were regularized, representing 1.8% of the total vehicle fleet in Mexico (2.8% when excluding motorcycles, cargo, and passenger vehicles). In 2023, the regularization of these vehicles reached 954,736 units, making up 1.6% of the overall vehicle fleet including motorcycles and heavy cargo vehicles, but only 2.5% of the total automobile fleet.
Key Questions and Answers
- What is the AMDA’s stance on clean fuel adoption? The AMDA believes that while the global trend is moving towards electric vehicles, Mexico should focus on utilizing higher-quality fuels to support the automotive industry’s development.
- Why are older vehicles a concern? Older vehicles, though regularized, have outdated technology that does not support the use of fuel additives to improve low-octane fuel quality. This results in increased fuel consumption and higher emissions of pollutants.
- What percentage of the vehicle fleet consists of these older, regularized vehicles? By the end of 2024, these vehicles accounted for 6.6% of light vehicles in Mexico.
- How have regularization numbers changed over the years? In 2022, 1.047 million vehicles were regularized (2.8% of automobiles), and in 2023, the number dropped to 954,736 units (2.5% of automobiles).
