(Corrects to indicate that auto production declined for the fourth consecutive year, and not second).

MEXICO CITY, Reuters – Mexico’s auto production dropped by 2% in 2018 compared to 2020. This is the fourth consecutive annual drop. It comes as Mexico’s main industrial sector struggles with pandemic shocks, a worldwide semiconductor shortage and other factors. Official data was released Friday.

The Mexican national statistics agency, INEGI, published figures that show the 2021 auto output fell from 3.040,178 in 2017 to 2.979,276.

The industry saw a slight increase in its exports. It sent 2,706,980 cars abroad in 2020, compared with 2,681,806 in 2020. This is almost one percent more than the 2,681,806 exported in 2020.

Only December saw a 16.51% decline in production and a 17.31% plunge in exports, making it the sixth consecutive month of decreases.

Due to the global semiconductor shortage, North American automakers have had to roll-shut down production in Mexico and North America.

The pandemic that struck Mexico in the last year caused Mexico to lose 20% of its auto manufacturing capacity. Mexico’s leading autos group AMIA believes that Mexico won’t see production return to the pre-pandemic levels before late 2023 or early 2024.

Auto output also declined in 2019 https://www.inegi.org.mx/contenidos/datosprimarios/iavl/doc/2020/rm_raiavl2020_01.pdf and very slightly in 2018 https://www.inegi.org.mx/contenidos/datosprimarios/iavl/doc/2019/rm_raiavl2019_01.pdf, according to INEGI’s existing historical data.