Sales of New Cars Plummet in Brazil and Return to Levels of 2007

01/03/2017 - 15h43

The Brazilian domestic automobile market has gone back through time. With a reduction of 20,2% in sales in 2016 compared to 2015, the sector is reliving sales levels not registered since 2006 and 2007.

According to data collected by Folha, 2,05 million new vehicles were licensed during 2016. This total includes passenger cars, light commercial vehicles, busses and trucks.

There is a silver lining though: sales in December exceeded 200 thousand units, something which didn't take place in any other month of the year. Although it is an atypical period (sales promotions and 13th salary payments stimulate activity at dealers) it helps the manufacturers dream of better days.

Anfavea (The Association of Domestic Manufacturers) expects vehicle sales to grow at least by 1 digit in 2017. The more conservative manufacturers are estimating something between 1% and 3% but the more optimistic ones are projecting something closer to a 6% increase.

However, those who suffered the most in the last months don't have great expectations.

One example is Chery, who is projecting that the market will remain stagnated. Although it has lost less ground to competitors in recent years, Honda also doesn't have great expectations for 2017.

Translated by LLOYD HARDER

Read the article in the original language