The automotive sector anticipates a difficult 2014 for sales.
“We will have more difficulties selling cars and light commercial vehicles,” predicts Alarico de Assumpção Júnior, president of Fenabrave; however, despite the decline in sales in 2013, he classified the performance as “good,” noting that the result comes from a base of strong growth and that the sale of more than 3,5 million units is something that “is almost enviable.”
Marli Moreira
Reporter from Agência Brasil
Sao Paulo - The new car retail market is cautiously monitoring the direction of the economy in 2014, and is confident that record sales results in the sector will not be frequently repeated in the coming years. Studies by the National Federation of Automotive Vehicle Distributors (Fenabrave) indicate that demand for automobiles may remain stable after a 3,5% decline in 2013.
Considering not only passenger cars, but also light commercial vehicles, trucks, and buses, forecasts indicate an increase of around 0,29% in registrations in 2014, compared to a decrease of 0,91% in 2013. The projections take into account two scenarios: one based on the strong performance of the economy and another that assesses the risk of greater volatility in the dollar exchange rate and the need for strict government measures to keep inflation under control, as reported by the CEO of Fenabrave, Alarico de Assumpção Júnior.
“We will have more difficulties selling cars and light commercial vehicles,” he predicts, highlighting that 2014 will be an atypical year with fewer working days, the World Cup, and elections. Despite the decline in sales in 2013, he classified the performance as “good,” noting that the result comes from a base of strong growth and that the sale of more than 3,5 million units is something that “is almost enviable.”
According to the executive, the increased restriction on credit and household debt influenced sales. Among the segments that suffered from the lack of money is the motorcycle sector, whose demand closed the year down 7,44%. Including all types of vehicles, including road implements, dealerships reduced sales by 2,29%.
The executive added that record growth was registered for light commercial vehicles and buses. Light commercial vehicles saw a 3,57% expansion with over 820 units registered, which is attributed to the strength of agribusiness activities. Bus sales grew by 20,58%, partly as a consequence of investments in transportation in the cities that will host World Cup matches.