The Market Share of Taiwanese Machine Tools in Mexico Expands

[2010-07-29]

The Market Share of Taiwanese ...	The Market Share of Taiwanese ...

After Mexico became a member of GATT in 1986, the market quickly opened, and parts of the manufacturing sector could not compete against imported goods. They either switched to do import trade or just closed down the business, which resulted in Mexico’s machine tools today relying heavily on imports. According to the statistics of Mexico’s Secretariat of Economy, the country’s import value in 2008 was US$741.31 million (HS Code 8455-8463 Products). Due to the global financial crisis in 2009, the import value decreased to US$499.03 million for the year. Mexican import agents however are skeptical about 2009’s figure and believe that it should be higher.

Taiwan’s plastic processing machines already entered the Mexican market in the late 1980s and have been well-known in the country. Though Taiwan’s machine tools went on the Mexican market later, the sales have clearly climbed in recent years. Despite the fact that last year was the worst year the Mexican economy had suffered since 1996, Taiwan’s export statistics have shown that the country’s composite processing machine and CNC lathe exports to Mexico still grew in adversity, with an export value exceeding US$5 million.

In 2008, Taiwan’s machine tool exports to Mexico even increased 20% compared to the year before. Taiwanese machine tool makers have expressed that Taiwan’s machine tools are price-competitive, high-quality, and its market share in Mexico is expanding. All in all, though in 2009 the demand of composite processing market diminished 50% and the sales of lathes fell 40%, the performance of Taiwan’s machine tools in Mexico was in fact similar to that of 2008, not significantly affected by the global financial crisis. Taiwan further hopes to provide complete after-sales service and maintenance system to solidify market shares.

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