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Light-vehicle retail market loses strength in May

Wholesales were more than half of the market in the first twelve days

By Redação AutoIndústria | 5/15/23 | Translated by Jorge Meditsch

Light vehicle deliveries amounted to 69.5 thousand units in the first 12 days of May. The figure shows a 10.5% fall from the same period last year. Nevertheless, the daily average of 7,717 licenses is slightly higher (2%) than the sales in the first twelve days of April.

As the first half of 2022 results were severely impacted by the semiconductors supply crisis, many plant halts and reduced product offer, May’s partial results indicate an aggravation of the retail demand fall.

Wholesales keep increasing their share, reaching 50.1% of the deliveries in May with 34.81 thousand units.

“The retail demand fall keeps as the main factor for the sector’s recovery. The hindrances are the same: high interests, vehicle price’s increase, inventories misaligned with the demand, and the loss of purchase power”, commented the consultant Marcelo Cavalcante, who projects May total sales, based on the current performance, from 169 thousand to 177 thousand units.

A possible Federal Government incentive to entry cars, to be announced on May 25, may positively influence next month’s sales.
Sources connected to the negotiations say the most affordable models could cost from R$ 50 thousand to R$ 6- thousand, at least 15% less than the current cheaper models, sold by over R$ 70 thousand.

In the first 12 days this month, Fiat led deliveries once more. With 16.1 thousand units, it opened a great advantage over the runner-up GM (11.4 thousand), practically tied with Volkswagen (11.3 thousand). But it is important to note: 68% of the Italian brand’s sales were wholesaled, as GM’s were 52% and VW’s 56%.


 

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