MEXICO CITY — Dressed in a blazing pink jacket with purse to match, car shopper Erika Amador Martinez is the embodiment of Mexico's auto market -- sizzling.
The lawyer from Puebla arrived at an auto show here this month to browse among dozens of models. Topping her list is a Ford EcoSport, a sport utility vehicle that she covets for its practicality, not to mention the kicky red paint job.
"I'll pay part in cash and finance the rest," said the 27-year-old, who is tired of cadging rides from her boyfriend. "It's a lot easier to buy a car than it was a few years ago."
Armed with credit and spoiled for choice, consumers like Amador have turned Mexico into North America's hottest auto market. Although sales in the United States and Canada have stalled, Mexico is experiencing double-digit percentage increases in 2004, with buyers projected to purchase a record 1.05 million new vehicles by year's end.
That's more cars and trucks than will have been sold in Australia by the end of this year and in all but a few European countries. Some expect Mexico to overtake Canada in annual vehicle sales by the end of the decade.
The auto boom is indicative of a rebounding economy, lots of young drivers and years of pent-up demand. Banks scorched by Mexico's mid-1990s peso crisis are back and lending billions of dollars to consumers, whose choices rival anything in U.S. showrooms. Lured by free trade agreements and Mexico's sales potential, nearly 40 car brands are fighting for a piece of the market.
Already a major vehicle manufacturer and exporter, with companies such as Ford, General Motors, DaimlerChrysler, Volkswagen, Honda and Toyota operating plants here, Mexico's growing domestic market could provide an added incentive for automakers to expand production in the country.
Not all are thrilled, however. Environmentalists are appalled by the prospect of more smog, sprawl and gridlock, particularly in this car-choked capital city. Some worry that lenders are making loans they shouldn't.
Still, for better or worse, Mexico is no longer just a low-wage auto assembler, but a big-league buyer as well.
"It's a market that has definitely arrived," said Gabriel Renero, head of automotive consulting for advisory firm Deloitte in Mexico.
But will it stick around?
