Mexico ranks as the world’s eighth most important automotive producer and third in the Americas after the United States and Brazil. Last year, Mexico produced 2.68 million cars. However, 83 percent of its production is devoted to exports and just 17 percent for the local market. Less than one million cars are sold in Mexico each year. Lack of financing and fiscal incentives as well as high taxation rates reduce local new car purchases. The average lifespan of a vehicle in Mexico is much greater than in the United States. Therefore, there are many opportunities in replacement parts as well as new technologies to keep automotive repair and maintenance businesses operating as efficiently as possible.
As of August 2012, the National Confederation of Automotive Workshops reported that Mexico has more than 298,760 automotive workshops for maintenance and repair that provide services that include diesel (all specialties light and heavy duty) automatic transmissions, suspension, diagnostic, oil change, air filters, painting, emission control centers, dealerships, regular brakes and ABS, door repair, computer system repair, fuel injection and cleaning, rectifiers, engine remanufacturers, rack repair, windshield installation, transmission, clutch repair, among others with an average of four technicians per facility. Approximately 62 percent of the automotive repair shops in Mexico have internet access. There is a need to train technicians as 80 percent of them have expressed an interest in receiving training— especially for new technologies.
Recent statistics show that there are 32.3 million cars in Mexico. Approximately 56 percent of cars sold in Mexico are imported and 43 percent are produced locally. Mexicans replace their vehicle every 12 years, while in the United States, people replace their car every seven years on average. In Mexico, consumers prefer preventive and corrective maintenance for their vehicles. While car insurance is a requirement in Mexico only 26.5 percent of vehicles are insured.
The market is divided into three segments: maintenance offered by dealerships, specialized auto shops that partner with insurance car companies and local independent auto shops. Repair shops that implement management process systems can serve up to 400 vehicles per month.
According to the Federal Attorney’s Office for Consumers, as of April 2009 the primary reasons a consumer takes its vehicle to the same auto shop are trust and warranty. 45 percent of consumers take their vehicle to the OEM dealership while 45 percent of them take them to auto shops for repair. Only 10 percent take them to franchises.
Repair shops look for diagnostic equipment that helps them identify the issue with vehicle Tools needed include scanners, electronic measurer systems, tools, pneumatic tools, among others. For those that handle collision repair, their needs are mainly welding equipment, cutting tools, welding for plastic repair, adhesives, plastic and glass repair kits, spray guns, batch ovens, and any other equipment related to body repair.