“Chocolate cars” legalization to cause a drop in sales of Mexico’s automotive industry: AMDA
The eventual approval of the transitory article of the Revenue Law 2020, which suggests the legalization of the illegal “chocolate cars” in Mexico, will cause a drop in sales of new vehicles in the country from the expected 1.3mn units for this year to 900 thousand in 2021, the president of The Mexican Association of Automotive Distributors (AMDA) Guillermo Prieto said, quoted by El Economista.
According to Prieto, this decline will cause a loss of 50bn pesos in VAT collection and will imply the loss of thousand jobs. Guillermo Rosales Zarate, director of AMDA, added that the eventual income generated by the regulation of the illegal cars won’t be able to offset the negative impact of the decrease in the industry’s sales.
The association estimates that in case of an approval of the transitory article next week, the local automotive industry could record a 43% drop in sales next year.Original source: El Economist