The cars were the second most exported product via rail in 2022 –only behind beer–, for which reason the rebound in production and export indicators has benefited the railway companies in the country.
In the case of Grupo México Transportes (GMXT), revenues from the automotive segment shot up 52% in the second quarter of the year and accumulated 1,498 million pesos. The company attributed the result to the “increase in production and increase in the market share of the main automobile manufacturers,” which also raised loaded cars in the segment by 21%.
Specifically, GMXT claims to have benefited from new imports of asian assemblerswho have set their sights on the Mexican market in recent months.
For Canadian Pacific Kansas City (CPKC) the result was similar. Between April and June, the company’s revenues skyrocketed 137% in the automotive segment to reach 257 million Canadian dollars, and in the Lázaro Cárdenas region –the main starting point for the sector– it registered a 24% increase in revenues from automotive sector, and volumes rose 11%, reaching an all-time high for the region.
In this regard, John Brooks, chief marketing officer of CPKC, explained in a call with analysts that demand for vehicles remains strong as the industry continues to catch up with inventory shortages in the North America region caused by the supply chain crisis of previous years. For this reason, the company is working with the assemblers to “create new solutions” that could have an effect in the short term.
Even the president and CEO of CPKC, Keith Creel, gave signs that the company will work so that the capacity of cars available for the transport of vehicles is sufficient.
“There is not a sufficient supply of cars to feed all the demand we have for automotive, as we accelerate our network in Mexico. Let’s create our own supply of cars, let’s get more loads. This will generate more income,” Creel said during the presentation of the company’s latest financial statements.
At the moment, the automotive segment is already beginning to gain a greater share in the revenue mix of the railways that operate in Mexico.
For GMXT the automotive sector represents 10% of its income when a year ago it concentrated 7.3%, and it is already the fourth industry that generates the most sales from the seventh position it occupied in the second quarter of 2022. Similarly, CPKC The strong demand for the segment is expected to continue in the second half of the year, and that in the quarter it represented 8% of revenues from the 5.4% it concentrated in 2022.