Industry Report July 2018

In July the national production of vehicles was 41,450 units, 5.1 % more in relation to June and 8.6 % more when compared to the performance of the same month last year.

The sector exported 25,363 vehicles, which means, 10.8 % more compared to June, and a 74.7 % growth compared to the volume recorded in July 2017.

In wholesale sales, the sector marketed to the dealer network 46,637 units, volume which was placed 15.8 % below the previous month, and 35.5 % less in its comparison to the performance of July last year.

With an average of 21 working days, the automotive terminals produced 41,450 vehicles (cars and utility vehicles), which means, it recorded a 5.1 % improvement compared to the previous June when 39,420 units were produced and 8.6 % progress if compared to the 38,169 units which were produced in July 2017.

Entre enero y julio, el acumulado de producción fue de 284.105 unidades, es decir un 9,8 % más respecto de los 258.823 vehículos que se fabricaron en el mismo período del año anterior.

Continuing with the data recorded in the seventh month of the year, the automotive terminals exported 25,363 vehicles, which reflects a 10.8 % improvement with respect to the volume exported the previous month, and a 74.7 % growth if compared to the 14,522 units which were exported in July 2017.

Accumulated in the first seven months of the year, the sector exported 146,933 vehicles, resulting in a growth of 30.1 % related to the 112,943 units which were shipped to various markets in the same period of the previous year.

The data of July confirm what was noted by Luis Fernando Peláez Gamboa, president of the Association of Automotive Makers (ADEFA) the previous month when the sales volumes and the industrial data showed a diametrically opposed behavior. “Again, the figures of the month reflect that it is necessary to analyze the sector behavior in two very different levels. On one hand, the industrial performance, and on the other the commercial”, the president of the association pointed. 

“Focusing on the main pillars of the industry, we have noted an improvement both in production as well as in exports. On this last point, since the beginning of the year, a growth in the shipments to Brazil has been recorded and it results in a 6 percentage point growth in this period”, Peláez Gamboa said and he added that “the trend in Brazil is also added to the increasing demand of our vehicles in different markets of Latin America and Central America”. A behavior which results in a progress in the share of total exports on production volumes of 43 % to 52 % comparing the seven first months of 2017/2018.

“On the marketing side, the exchange rate variations and the interest rate, which is still very high, have had a strong impact on the sales of vehicles, situation which we expect to be regularized and to enable us to return to a domestic market that will grow in the shortest possible time”, Peláez Gamboa said.

In wholesale sales, the report shows that in July a total of 46,637 units were marketed to the dealer network, which means, 15.8 % less compared to the 55,358 sold in the previous June and 35.8 % below the performance of the same month last year when 72,684 units were placed in the car dealer network.

With a total of 468,244 vehicles marketed between January and July, the sector recorded an interannual drop of 4 per cent with respect to total sales.

Finally, the president of the association highlighted that regardless of the numbers, “we must continue along the working path which has been jointly undertaken with the ministries of Production, Transport, secretariat for Modernization, Customs and other agencies, on the simplification of processes and the continuous improvement of the competitiveness and which already counts with concrete results. We can mention, among other examples, the removal of the vehicles’ expert opinion at the time of importation or the introduction of electronic and distance formalities in more than a dozen of processes and before different State agencies (INTI, DNRPA, Senasa, etc.).

Press 08/03/18

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