Mexico's falling sales lead to fierce competition for loans

Currently, the share of auto loans in Mexico is below 8.0%, so competition is extremely fierce in the supply of such loans. The loans also come with bonuses, discounts and one year of free insurance. Especially aggressive plans from Chinese automakers, with credit accounting for 72% of total sales in Mexico's new car sales from January to May 2025. . On the one hand, the Bank of Mexico is lowering its benchmark interest rate. On the other hand, faced with slowing new car sales, automakers are taking more aggressive measures to revive demand.