Retail accounted for less than half of deliveries in October, the year's second-best month
By Alzira Rodrigues | Translated by Jorge Meditsch
The light vehicle market registered in October the second-best performance in the year with 206.7 thousand deliveries. More than half (54.7%) of the sales were made directly by the manufacturers.
Automobiles and light commercial vehicle sales grew 10.2% over September (187,430 units) and 22.7% over October last year (168,452).
113,047 units were commercialized directly by manufacturers and 93,622 through retail. This was the second consecutive month wholesales overcame retail with about 55% of the market.
Fenabrave’s president, José Maurício Andreta Jr. attributed the light vehicle and motorcycle market performance to October’s one extra business day compared to September.
Year-to-date, 1,741,128 light vehicles were negotiated, an 11.4% increase over last year (1,563,544).
Some manufacturers, among them Renault, are selling directly to personal consumers. This action implies a smaller commission to the dealers, but the lower price favors their businesses.
Besides this, in October, there were more retail promotions to attract consumers. Many brands announced discounts and special financing conditions.
Andreta Jr regretted the veto to extrajudicial vehicle repossession by financers in the Warranties Legal Mark published on October 31.
“Credit cost affects the Brazilians’ purchase power, and mechanisms are necessary to provide creditors more legal safety to reduce financing costs. We need measures to stimulate credit in the country, and we were confident the Warranties Legal Mark could provide this”, he said.
Fenabrave’s president recalled that the vehicle distribution sector needs retail scale to operate sustainably: “To achieve this, the repossession law could be a strong ally by reducing restriction to approve consumers’ history to finance vehicles. Consumers suffer the most with the veto”
Photo: BMW
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