Latin America. In Q1 auto sales fell 7.2%

28
Americas Automotive Market
Chevrolet-Equinox-2021

Americas Automotive Market in the first quarter of 2020 reported a robust loss, hit by the Coronavirus outbreak. Indeed, in March huge declines were registered for Brazil, Chile and Colombia, dragging the Q1 down 7.2% with 1.26 units sold.

 

Economic Environment

Regional inflation slid to 7.5% in March (February: 8.0%) largely due to lower energy prices. Lackluster activity has kept price pressures broadly in check recently in most countries. The exceptions remain Argentina and Venezuela, though inflation eased again in the former in March. Regional inflation is seen receding somewhat ahead, weighed on by muted demand.

Most of the region’s currencies continued to lose ground against the U.S. dollar recently on sustained investor worries over the extent of the economic impact from Covid-19, with the Brazilian real particularly hard hit. Colombia’s peso, Peru’s sol and Uruguay’s peso, however, appreciated somewhat. Currencies are seen weakening this year—and more sharply than in 2019

 

Market Trend

The Automotive industry was recovering in recent years. Indeed, following the previous three years of difficulties, mainly driven by the decline of Brazilian and Argentinian markets, in 2017 the Latin American market was recovering, ending the year with a total of 5.6 million light vehicles sold. However, after reporting a positive performance in 2018 with over 6 million sales, the market fell 2.6% in 2019 with near 5.9 million units sold.

In the first quarter of 2020, as the entire World was hit by the Coronavirus outbreak, registrations were hit by a robust loss. Indeed, in Q1 sales were 1.26 million, down 7.2% from the previous year.

Indeed, in March huge declines were registered for Brazil, Chile and Colombia.

Please note as data are not final for Ecuador, Peru, Puerto Rico, Costa Rica and Bolivia.

CountrySales 2020Variation YTD 2020
Brazil532.574-8,2%
Mexico326.595-1,9%
Argentina95.325-18,0%
Chile76.516-19,2%
Colombia49.515-7,7%
Ecuador39.759
Peru36.995
Puerto Rico24.462
Costa Rica8.590
Bolivia8.461
Uruguay7.852-10,1%