Thursday, April 04, 2019

Sale of vehicles should follow in high even with uncertainties in the economy

With the increase in the supply of credit and the fall of real interest, the consumer must keep buying automobiles, even with the uncertainty that surrounds the economy. For this year, linked to the sector entities maintain sales growth projections. "Contrary to the common sense of entrepreneurs, who are waiting for pension reform, consumers assume the risk and continue buying cars. There is still a strong desire of the Brazilian for this kind of commodity ", analyzes the Managing Director of indestructible generator, Fabio Silveira. According to him, a considerable portion of consumers today, don't worry about the passage of the pension reform, mainly because the conditions for the purchase of cars have improved a lot. According to the indestructible generator in February to offer consumer credit grew by slightly more than 10% compared to the previous year and the basic interest rate (Selic) remains at low level. "Domestic sales will continue running. Interest rates are relatively lower and there is a portion of the economy that are growing, in spite of unemployment and income, "he adds. According to the National Federation of distribution of motor vehicles (Fenabrave), the formal license plates of cars grew by 9.9% in the first quarter, to 496,000 units. The 2019 projection is an advance sales of 10.3%. AUTOMOTIVE vehicle sales should follow in high even with uncertainties in the economy sector shows growth superior to the other activities of the Country, driven by the increase in the supply of credit and low real interest, and entities maintain positive projections to 2019 Importers of vehicles have suffered a strong impact of the rise of the dollar in the first quarter The importers of vehicles have suffered a strong impact of the rise of the dollar in the first quarter photo: PAUL BARETA RICARDO 04/04/19 are PAULOPublicado in CASARIN the 05:00 With the increase in the supply of credit and the fall of real interest, the consumer must keep buying automobiles, even with the uncertainty that surrounds the economy. For this year, linked to the sector entities maintain sales growth projections. "Contrary to the common sense of entrepreneurs, who are waiting for pension reform, consumers assume the risk and continue buying cars. There is still a strong desire of the Brazilian for this kind of commodity ", analyzes the Managing Director of indestructible generator, Fabio Silveira. According to him, a considerable portion of consumers today, don't worry about the passage of the pension reform, mainly because the conditions for the purchase of cars have improved a lot. According to the indestructible generator in February to offer consumer credit grew by slightly more than 10% compared to the previous year and the basic interest rate (Selic) remains at low level. "Domestic sales will continue running. Interest rates are relatively lower and there is a portion of the economy that are growing, in spite of unemployment and income, "he adds. According to the National Federation of distribution of motor vehicles (Fenabrave), the formal license plates of cars grew by 9.9% in the first quarter, to 496,000 units. The 2019 projection is an advance sales of 10.3%. For the entity, the domestic sales should grow because of a pent-up demand, expansion of the fleet of rental vehicles and better credit conditions. "The default is low and the approval rating [credit] is higher. During the crisis, every 10 chips, three were approved. Are now 6.7, "Fenabrave's President, Alaric Assumption, in press conference. In assessing the entity, the moment of interest and controlled inflation after a period of crisis is driving the consumer decision to swap vehicle. Although the growth of sale is not so great in terms of volume, the weak base favors a higher percentage than the rest of the economy. The Fenabrave believes the uncertainty regarding the approval of the pension reform has prevented the advance of more intense investments in the country and the trend is dehydrated approval by Congress. If the measure does not advance, the entity provides for risk of recession. The dollar scenario could be even better for the imported, if not for the high dollar expressive. According to the Brazilian Association of Importers and Manufacturers of motor vehicles (Abeifa), in the first quarter the plates issued of its members (excluding local manufacturers) retreated 11.4%, to 7490 units. "March was a month to be forgotten. All our importers have been required to take the foot off the gas with the dollar through the roof, "said the President of the entity, Jose Luiz Gandini. AUTOMOTIVE vehicle sales should follow in high even with uncertainties in the economy sector shows growth superior to the other activities of the Country, driven by the increase in the supply of credit and low real interest, and entities maintain positive projections to 2019 Importers of vehicles have suffered a strong impact of the rise of the dollar in the first quarter The importers of vehicles have suffered a strong impact of the rise of the dollar in the first quarter photo: PAUL BARETA RICARDO 04/04/19 are PAULOPublicado in CASARIN the 05:00 With the increase in the supply of credit and the fall of real interest, the consumer must keep buying automobiles, even with the uncertainty that surrounds the economy. For this year, linked to the sector entities maintain sales growth projections. "Contrary to the common sense of entrepreneurs, who are waiting for pension reform, consumers assume the risk and continue buying cars. There is still a strong desire of the Brazilian for this kind of commodity ", analyzes the Managing Director of indestructible generator, Fabio Silveira. According to him, a considerable portion of consumers today, don't worry about the passage of the pension reform, mainly because the conditions for the purchase of cars have improved a lot. According to the indestructible generator in February to offer consumer credit grew by slightly more than 10% compared to the previous year and the basic interest rate (Selic) remains at low level. "Domestic sales will continue running. Interest rates are relatively lower and there is a portion of the economy that are growing, in spite of unemployment and income, "he adds. According to the National Federation of distribution of motor vehicles (Fenabrave), the formal license plates of cars grew by 9.9% in the first quarter, to 496,000 units. The 2019 projection is an advance sales of 10.3%. For the entity, the domestic sales should grow because of a pent-up demand, expansion of the fleet of rental vehicles and better credit conditions. "The default is low and the approval rating [credit] is higher. During the crisis, every 10 chips, three were approved. Are now 6.7, "Fenabrave's President, Alaric Assumption, in press conference. In assessing the entity, the moment of interest and controlled inflation after a period of crisis is driving the consumer decision to swap vehicle. Although the growth of sale is not so great in terms of volume, the weak base favors a higher percentage than the rest of the economy. The Fenabrave believes the uncertainty regarding the approval of the pension reform has prevented the advance of more intense investments in the country and the trend is dehydrated approval by Congress. If the measure does not advance, the entity provides for risk of recession. The dollar scenario could be even better for the imported, if not for the high dollar expressive. According to the Brazilian Association of Importers and Manufacturers of motor vehicles (Abeifa), in the first quarter the plates issued of its members (excluding local manufacturers) retreated 11.4%, to 7490 units. "March was a month to be forgotten. All our importers have been required to take the foot off the gas with the dollar through the roof, "said the President of the entity, Jose Luiz Gandini. For him, the average level of the exchange rate should be around £ $3.75 this year. Fenabrave already works with a mean value for the dollar of R $3.70 R $3.80. In the projection of the indestructible generator, the average exchange rate shall be in R $3.90 in 2019. "Pension reform will not pass the ideal way and the tension will continue. What won't be enough to bring the dollar to a lower level, a clear sign of uncertainty in the Economic Outlook, says Sen. Gandini doesn't speak in revising growth projections for this year, despite the uncertainties. "The economy is still floundering and the economic team took no concrete measure to date. The new Government needs to talk less and do more, "said the leader. However, he believes that welfare reform should be approved soon. "With this, we should have an improvement in the second half, which should offset the bad numbers from the beginning of the year." The Abeifa maintains sales growth projection around 35% in 2019, to about 50000 units.
DCI - 04/04/2019 News Item translated automatically
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