Gerardo Gómez GalvezSr. Director General / Country Manager
Mexico
“Changes in the Consumer Preferences”
Agenda
Market
Consumer
Takeaways
MARKET
© 2019 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY
Global Sales Slows downStart recovery Next year
87.3 89.193.0 95.2 94.4
91.3 92.195.2
99.1102.4
105.0 107.3
2014 2015 2016 2017 2018 2019 F 2020 F 2021 F 2022 F 2023 F 2024 F 2025 F
© 2019 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY
Global ProductionNext Year is expected to start recovering
87.5 88.892.9 95.0 94.1
90.3 92.0 95.098.7 101.7 103.9 105.8
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Global Production
Alternative Technologies, speeding up globally
Source: AMDA/ LMC/ JD Power
Global Sales Forecast
93
95 94
9192
95
99
102
105
107
3% 4% 5%7%
11%15%
18%21%
23%26%
-5.0%
5.0%
15.0%
25.0%
35.0%
45.0%
55.0%
65.0%
75.0%
80
85
90
95
100
105
110
2016 2017 2018 2019 F2020 F2021 F2022 F2023 F2024 F2025 F
Global Sales Hybrid /Electric
© 2019 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY
Global
78.52%
US
18.02%
CAN
2.03%Mex
1.43%
North America Represents 21.5% of the Global Sales
México accounts for 1.4%
Mexican Sales
Sales volumes willget to max high in 2023
Fuente LMC y AMDA
1.13
1.34
1.61.52
1.411.32
1.38
1.48
1.59
1.69
1.791.88
2014 2015 2016 2017 2018 2019 F 2020 F 2021 F 2022 F 2023 F 2024 F 2025 F
Millions
Mexican Sales
Alternative Technologies on a much slower pace
Fuente LMC y AMDA
1.61 1.53
1.42 1.33
1.38 1.49
1.59 1.69
1.79 1.88
0.5% 0.7%1.3%
1.8% 1.8% 2.2%2.7%
3.4% 3.6% 3.8%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
-
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2016 2017 2018 2019 F 2020 F 2021 F 2022 F 2023 F 2024 F 2025 F
Ventas en México Híbridos y Eléctricos
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Mexican Production
Production willcontinue close to 4M
Fuente LMC y AMDA
© 2019 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY
Fuente: JD Power México / LMC Automotive LLC*
1.61 1.53 1.42 1.33 1.38 1.49 1.59 1.69 1.79 1.88
3.46
3.90 3.91 3.83 3.77 3.87 3.894.08 4.20 4.20
2016 2017 2018 2019F 2020F 2021F 2022F 2023F 2024F 2025F
Mil
lon
es
Sales Production
Mexican Automotive Industry continue its
dynamismMexican Sales and Production
© 2019 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY
2019 Top Sellers and Producers
1.40
1.43
1.69
1.91
2.10
2.20
2.80
2.83
3.83
4.06
4.11
5.05
9.45
10.82
24.49
Turkey
UK
Russia
Canada
Thailand
France
Spain
Brazil
Mexico
Korea
India
Germany
Japan
USA
China
Top 15 Producers
1.07
1.33
1.46
1.72
1.80
1.92
2.04
2.62
2.64
2.73
3.56
3.85
5.26
17.01
26.24
Australia
Mexico
Spain
Korea
Russia
Canada
Italy
Brazil
France
UK
India
Germany
Japan
USA
China
Top 15 Sellers
0.47
0.52
0.64
0.83
0.93
0.94
1.00
1.08
1.16
1.21
1.31
1.79
1.92
1.96
2.37
2.89
3.52
Italy
UK
USA
France
China
Russia
Canada
Brazil
India
Indonesia
Germany
Japan
Spain
Thailand
Korea
Mexico
Turkey
Index Production / Sales Title
86.5%
55 Countries82.4%
137 Countries
Exporters
Importers
Vehicle Quality by Country of Production Origin
* PP100 = Problems per 100 vehicles
Source: J.D. Power 2017 / 2018 / 2019 U.S. Initial Quality StudySM (90 days ownership)
100
94
90
2017 PP 100*
14
98
91
86
2018 PP 100*
94
94
84
2019 PP 100*
CONSUMER
What is Customer Satisfaction?
Customer Satisfaction ExpectationsPerformance
© 2019 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY
Products and Services: Quick, easy and customize
I.E. Previuos registration, support on Technology
¿How the Satisfaction is defined by the Customer?
© 2019 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY
How much $$$ expend in buying a new car?Mexican Pesos
161 173 190 191 200 228 227 215 238 249 266 258 283 296 310
3.95%
3.47%
4.03%
5.57%
5.08%
3.68%3.42%
4.57%
3.46%
4.15%
2.59% 2.73%
6.66%
4.90%
3.16%
0
50
100
150
200
250
300
350
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Precio Inflacion
92.5%
© 2019 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY
82% of new Car Buyer
in México use internet during the shopping/sales
process
Source: J.D. Power 2019 SSI Sales Satisfaction Study Mexico SM.
© 2019 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY
How Much a Customer pays $$$ for service?Mexican Pesos
1,853 1,903 1,541 1,589 1,641 2,254 2,541 2,418 2,657 2,433 2,601 2,128 2,496 2,589 2,759
3.95%
3.47%
4.03%
5.57%
5.08%
3.68%3.42%
4.57%
3.46%
4.15%
2.59% 2.73%
6.66%
4.90%
3.16%
0
500
1,000
1,500
2,000
2,500
3,000
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
48.9%
© 2019 J.D. Power. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY—For Internal Use.
2019 MX Vehicle Dependability Study (VDS) 21
4.7
4.4
4.3
3.9
3.3
3.3
3.0
2.9
2.8
2.7
Built-in Bluetooth Mobile…
Brakes are Noisy
Materials Scuff/Soil Easily
Seat Material Problem
Air Conditioning Doesn't…
Abnormal Suspension Noises
Exterior Light - Bulb Failed
Steering Wheel - Excessively…
Seat Squeaks/Rattles, Abnormal Noises
Strut/Shock Absorber Problem
Most Frequent
Problems (PP100)
reported by
Mexicans
Focusing on Customer perceptions Will help lead the Satisfaction
Payed vs Expected
Knowing thecustomerexpectations can helpus to re-define ourstrategies
Slource: JD Power CSI 2018
7%
20%
66%
6%1%
$4,616
$3,327
$2,476$2,006
$2,415*
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
7,000
7,500
8,000
0%
100%
Much higher
than I
expected
A little higher
than I
expected
About what I
expected
A little lower
than I
expected
Much lower
than I
expected
Non-Premium Non-Premium - $ Spent
Big Business Opportunity…Who will get it?
Number of Dealer Visits to Service per year
1.96
2.18 2.212.1
1.8
1.3 1.4
0.8
0.60.8 0.7 0.7
0.40.18
0.31 0.39
0.8
1.41.5
1.7
1.91.8
2.2 2.2
3.0
2.5
1 Year 2 Years 3 Years
(CSI)
3 Years
(CSI LT)
4 Years 5 Years 6 Years 7 Years 8 Years 9 Years 10
Years
11
Years
12
YearsAge of Vehicle
Dealer Visits/Year Non-Dealer Visits/Year
2019 CSI 2019 CSI-LT
Evolving the Service Schedule expectations
Digital Support isproviding positive experiences…
Slource: JD Power CSI 2019
8%
73%
1%
17%
9%2%
81%
1%7%
863
842
822815
811
780
790
800
810
820
830
840
850
860
870
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Scheduled
appointment over the
Internet/Application
Scheduled
appointment via text
message or messaging
app (WhatsApp, etc.)
Called for an
appointment
Scheduled
appointment via
vehicle
communication
system
Did not make an
appointment
2015 2019 Service Satisfaction Index 2019
Different Customers, different requirements and preferences
25
How Customers prefer to be informed
Slource: JD Power CSI 2019
36%
32%
13% 11%9%
8% 8%
36%
46%
3%
17%19%
9% 9%
21%
9%
21%
9%
44%
2%
4%
35%
9%
16%
31%
14%
11%
5%
31%
N/A
18%
25%
31%
7%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Service
facility to call
me
Messaging
app
(WhatsApp,
etc.) updates
Update not
desired
Text message
updates
In-person
(visit shop or
wait during
repairs)
updates
Customer to
call the
service
facility
Mexico Brazil United States United Kingdom Canada
© 2019 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY
28% of the new car buyers in
México belongs to the Gen Y…
Source: J.D. Power 2018 SSI y 2018 CSI Study Mexico SM.
And in Service/ aftersales goes up
to the 65%
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Satisfaction with the Financial Service
29% 2% 65%4%
872
857
849
824
790
800
810
820
830
840
850
860
870
880
0%
10%
20%
30%
40%
50%
60%
70%
45% 45% 10%
858
838 838
825
830
835
840
845
850
855
860
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
Bancos Financiera de
la marca
Otras
TAKEAWAY
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