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Missing the Mexican Market
Page 93
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Most British Makers Seem Unaware of the Prospects in an Expanding Country
itilEXICO has a rapidly expanding IVI economy with a high degree of industrial development and therefore requires large numbers of new commercial vehicles. At present Britain supplies few of them and neither does this country export many raw materials to Mexico for local manufacture. Figures for our total exports to this market. compared with those of the U.S.A., show that we are missing our opportunities.
In the first six months of 1956, the U.S.A. exported goods to Mexico to the value of £185m., but sales of British goods for the whole year totalled only £9.5m., and of this amount Elm. represented sales of road vehicles, including £363,314 for 797 commercial vehicles. This year the position is scarcely any better. During the first three months of 1957 we sold only 122 complete commercial vehicles, valued at £55.160, plus a number of chassis.
Trade officials who recently returned from Mexico have told me that part of the reason-for this situation is our lack of knowledge of this great and growing market. It may he that some of our industrialists have .never forgiven the nationalization of the Mexican oil industry in 1938,-,but if they were wise and unwilling to lose a worthwhile opportunity they would visit Mexico without delay. The Commercial Counsellor of the British Embassy in Mexico says: "There is. •room for Britain to extend her exports here, if only she shows sufficient interest."
Developing Industries Among Mexico's developing industries are those of Pharmaceutical preparations and radio a'§sembly. Until recently half thcpontilafion of Mexico was engaged in agriculture. The country is the second largest producer of lead and the seventh largest producer of oil in the world.
There are problems involved in exporting more commercial vehicles to meet the needs of Mexico's developing industry and at least two manufacturers.
the British Motor Corporation and the Rootes Group, are showing that they are determined to overcome them.
The Main difficulty is to give Mexico the service offered by the neighbouring U.S.A., which regards her as an extension of the home market. Then there are the usual difficulties in offering aftersales service, maintaining a sales effort and competing in price, but British commercial ,vehicle manufacturers have demonstrated elsewhere how to deal with them.
A recent development should encourage British concerns. There is a permanent exhibition of British products organized by the British Chamber of Commerce in Mexico. It is held'in the patio of the Palacio Itur bide in Mexico City, and its aim is to display a variety of British goods• which -are likely to interest Mexican buyers. Cars are included, so why not commercial vehicles? WILFRED ALTMAN_