Expensive and sophisticated models are more accepted in Chile, Colombia and Mexico
12/08/2022
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Márcio de Lima Leite — Foto: Silvia Zamboni/Valor
The foreign market will be one of the biggest highlights for the Brazilian automotive industry in 2022. The problems in Argentina, where currency clearance restrictions hinder imports, have been compensated by the expansion of sales in other countries. The Argentinean market share in the volume of vehicles exported by Brazil fell to 29% this year from 36% in 2021. On the other hand, the shares of Mexico and Colombia grew to 16% from 14% each.
Besides compensating for the losses in Argentina in shipped volumes, which increased 34.3% in the year until November, these new markets help in the increase of revenues. The foreign sales of the automobile industry totaled $9.6 billion in the 11 months. The figure is practically double that of two years ago. From January to November 2020, the country’s revenue from vehicle exports totaled $4.8 billion.
According to Márcio de Lima Leite, president of the National Association of Vehicle Manufacturers (Anfavea), in addition to the fact that cars have become more sophisticated in general, which makes them more expensive, Mexicans, Colombians, and Chileans tend to buy cars of higher value than Argentines.
Although Argentina maintains its position as the main destination for exports, the industry’s focus is on increasing demand in other neighboring countries. “Due to the country’s internal restrictions, Argentina is losing importance in comparative terms,” said Mr. Leite.
Vehicle exports grew 55% in November, totaling 43,400 units. This added up to a revenue of $975.8 million, an increase of 50.5% in comparison to the same month last year. The year’s foreign sales totaled 334.8 thousand vehicles, a volume 34.3% higher than in the same period last year. The revenue, of $9.6 billion, was 40.6% higher than in the same period of 2021.
Sales abroad are also accelerating because the supply of components has begun to normalize, although the problem, which mainly involves semiconductors, is feared to persist in the coming months. Nevertheless, the impact will be smaller this year than in 2021. Last year, almost 400,000 vehicles stopped being produced due to a shortage of components. This year, until November, the loss amounts to 250,000 units, according to Anfavea’s data.
The domestic market, although also on the rise, brings concerns to the industry leaders as the participation of financing in sales reached again in November the lowest levels in the history of the sector. According to Anfavea, 70% of the deals were cash. This indicates, according to Mr. Leite, that the consumer who needs it most has not been able to access credit.
The representatives of the automotive industry celebrated the November results. The daily sales average was the best since December 2020. In the month, 204 thousand cars, light commercial vehicles, trucks, and buses were sold, a growth of 17.9% compared to the same month last year. In the car segment, the result was even better, with an advance of 16%.
For the president of Anfavea, despite the lack of components and the possibility that the World Cup games may hinder a little sales at dealerships, the November results indicate that the last projections of the entity for the year will be reached.
In the last revision, in July, Anfavea estimated a domestic market of 2.1 million vehicles, which represents a 1% advance, compared to 2021. In the year to November, 1.88 million units have been sold, a 1.3% contraction compared to the same period in 2021.
*By Marli Olmos — São Paulo
Source: Valor International