Panel SA: Automakers predict crisis at the beginning of Lula’s term

Brazil has become the country of second-hand vehicles and this is compromising the business of automakers who expect to continue flying ‘chicken flights’, with few consecutive highs and many lows in sales.

This is what the Data OLX Auto report shows. The most recent data indicate low growth for 2023. According to the automakers themselves, the scenario will get worse in the face of uncertainties about the intensity and duration of the economic crisis. The only certainty is that there will be a crisis.

The market recorded better production and sales performance in August, but accumulated two consecutive falls in September and October. In comparison with October 2021, however, there was a positive variation of 12.3% in sales of new cars and a decrease of 8.1% among used ones.

The reading is that the semiconductor crisis and the interruption in the production of automakers during the peak of the pandemic provided an ideal scenario for the sale of used cars.

With the resumption of production and the increase in the stock of new vehicles, the pressure on prices has eased and the attractiveness of used cars has dropped.

Even so, the drop in used vehicles is seen as a possible accommodation in the market. End of year promotions can reverse the situation.

The OLX Carros report also forecasts a high interest rate policy for vehicle purchases, which is not encouraging for the sector.