U.S. Light Truck and Utility Vehicle Imports from Mexico Replaced Canadian, but the Recovery Period Was Six-Year Long

Motor Vehicles June 07, 2016
Author: Irina Andreeva
Market Analyst

The U.S. dominates in global imports of light truck and utility vehicle, accounting for a 32% share (based on USD). It was distantly followed by Canada (8%), the United Arab Emirates (4%) and Saudi Arabia (4%). In 2015, U.S. light truck and utility vehicle imports totaled 15,895 million USD, which was 1,002 million USD (+7%) more than the year before.

From 2007 to 2015, U.S. light truck and utility vehicle imports showed mixed dynamics. An enormous drop in 2008 continued in 2009 and was followed by gradual recovery growth over the next six years. Only in 2014, U.S. light truck and utility vehicle importers overcame the pre-recession import level achieved in 2007.

The U.S. remains one of the most attractive destinations for overseas suppliers. Mexico was the main supplier of light truck and utility vehicle into the U.S., with a 95% share of total U.S. imports in 2015. Mexico also was the fastest growing supplier (+9.8% per year) from 2007 to 2015. Mexico significantly strengthened its position in the U.S. import structure, from 49% in 2007 to 95% in 2015. By contrast, Canada saw its share plummeted from 51% to 1%.

From 2007 to 2015, the U.S. was a net importer of light truck and utility vehicle. Moreover, imports grew faster than exports on average over the period under review.

The U.S. trade deficit in this sector worsened over the period under review, growing from 6,215 million USD in 2007 to 7,119 million USD in 2015. However, in the period from 2008-2011, the trade deficit was small, even a slight surplus was tracked in 2009. After a period of fluctuations, the negative trend accelerated sharply in 2011-2015.

Source: U.S. Light Truck And Utility Vehicle Market. Analysis And Forecast to 2020