What is the current situation of the vehicle sector?
According to the statistical datathe percentage share of the vehicle segment new goes decreasing and increased the share of used. Taking as reference the period ofthe last 7 years, starting in 2015, of every three (3) vehicles that entered the country with a commercial vocation, one was new (33%) and two used (67%), with absolute figures of 27,483, out of a total of 84,938 imported units . Almost the same behavior is registered for the year 2016, with 25,994 new cars, out of a figure of 98,328, which represented 26.4%.
Each year the percentage share of the new unit has been decreasing, for 2017 it was 21.0%. They continued to decrease for 2018, which represented 19.95%. While in these years the importation and commercialization of medium-use vehicles increased, to the point that commercial banks opened their financing portfolio to used units.
For the recent year 2021, the comparison was of every five (5) units: one (1) is new (20%) and four (4) used (80%), with a registered number of 18,030 cars, out of a total of 100,243. It should be noted that 2020, due to the pandemic, was the one with the greatest drop in operations, with 17,634, which meant a percentage value of 17.95% new cars and 82% used.
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It should be noted that the used vehicle market is supervised by ANADIVE. (whose members sell new and used vehicles) and two more Associations: ASOCIVU and ADECI, which only sell used. Together, the 3 Associations integrate 1,100 medium and small companies. And also private persons who carry out imports, supposedly for non-commercial use.
The market trend, with a declining share of new vehicles, continues in the post-pandemic situation, in which there is a decrease in the global production of new units and the prices of used vehicles increase. In the first quarter of 2022, there is still a deficit of various models and brands of the emblematic automotive sector. Meanwhile, dealers replenish their inventories of used models from markets like the US, Japan, the EU and Korea.
What expectation does the association have for the sector for the rest of the year?
As everyone knows, the pandemic produced a worldwide decrease in new units due to a reduction in the capacity of production plants and the lack of key materials, such as microchips, semiconductors and aluminum alloys. . The lack of new cars in the market, generates the price increase, due to the accentuation of demand, of medium-use cars. With a considerable increase in prices in international markets and the main auctions, which makes it more expensive to replace inventories. Accompanied by the disproportionate increase in the cost of sea freight.
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Thus, the situation will not be recoverable in the short term. The forecasts are that the situation of shortages and high prices will continue for the rest of 2022, until the industry stabilizes. Meanwhile, ANADIVE and its affiliated companies will make their best efforts to seek promotion and marketing plans, such as the current Auto Fair, accompanied by the best financing plans in the market, in alliance with commercial banks. It is expected that by the end of the year a major Fair will be held at the national level and, as always, present the best offers and provide customers with the possibility of changing their vehicles or acquiring new units.
How did the pandemic affect the Used Vehicle Sector and how were sales in the first quarter of 2022?
The direct effect of the pandemic on the Used Vehicles sector was the decrease in supply in the markets and with it the increase in prices from suppliers and federal auctions, especially in the US, where the price of some used models, they even exceeded the future price of the same new model. In the local market, there were significant increases in vehicle prices, with the subsequent drop in sales, due to the law of supply and demand. For the recent year 2021, and the first quarter of 2022, negotiations were reduced by about 40%, according to ANADIVE’s publication in the national press, considerably affecting the stability and profitability of companies dedicated to vehicle trading.
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What is the number of direct and indirect jobs generated by the used vehicle sector?
As we stated in the previous paragraph, together the 3 Associations integrate 1,100 medium and small companies, dedicated to the distribution and commercialization of automobiles, with a presence throughout the national geography. And also private persons are engaged in the importation of used vehicles, supposedly for non-commercial use. ANADIVE, which is the oldest, founded in 1986, has a membership of 393 associated companies, ASOCIVU has a membership of 232 associates, while ADECI groups 467 members. If we assume that each company has an average of 10 employees (most have more, including salespeople, secretaries, messengers, customs officers, cleaners, drivers, mechanics, accountants, administrative staff, etc.).
This means 10,900 direct jobs and more than 30,000 indirect jobs, which are supported by the used vehicles line. Similarly, the vehicle sector increases the Portfolio of commercial banks, and boosts other lines of the automotive industry, such as parts and pieces, tires, car decorations, mechanic workshops, oils and lubricants, batteries, etc. As can be seen, Used Vehicles represents an important segment of the national economy that cannot be ignored due to its momentum and growth.
What measures do you consider should be taken by the official authorities to promote the sector?
Among the most relevant measures to be taken by the authorities to promote the vehicle sector, the following can be listed:
Continue to apply the Incentives Agreement for imports and increase in tax collections, which allows a fair customs valuation through the application of the Depreciation Table for used vehicles, based on the depreciation of new units of the same model and year.
The used vehicle sector requires the application of a Special Simplified Taxation Regime to pay taxes in the DGII of vehicles imported directly by dealers and that this General Directorate recognizes as part of the Tax Administration, the customs facility granted in a transparent manner through the Agreement with DGA cited in point.
