The improvement in the private and corporate segment does not prevent the impact that the microchip crisis has on new registrations
The auto industry remains one of the hardest for them to recover pre-pandemic activity numbers. The industry bid farewell to the month of May with another 10.9% decline in passenger car and SUV registrations, compared to the same month of the previous year, totaling 84,977 units.
Of the industry’s main associations (Anfac, Faconauto and Ganvan), they attribute the complex situation to the microchip crisis, which continues to hamper production at the demand-driven pace, something which is greatly slowing deliveries to new buyers.
A situation which, together with the difficult economic environment, has resulted in a total of only 318,487 vehicles sold in the total period of the year (until the end of May), a decrease of 11.5% compared to the same period of the last year.
The numbers are still bad. However, the data for May is showing some light amid so much gloom for the industry. Both retail and corporate sales managed to improve on the previous year’s figures in the month, growing 4.3% and 3.3% respectively.
Specifically, the private channel reached 34,666 registered units, mainly powered by electric vehicles, while the corporate channel reached 32,076, breaking the downward trend of the last two months.
The worst part, and the one that weighs the most in the aggregate numbers, is taken up by the rental channel, with a sharp drop of 41.4%. This situation could indicate that the industry is renewing contracts with these companies (without giving them new cars) to meet the demand from individuals and businesses, which is also a more profitable business.
Raúl Morales, director of communications at Faconauto, explains that “in May there was a slight improvement in dealer orders, and also registrations due to the fact that, very little by little, the vehicles sold are registered in previous months.
Despite this minor reactivation, sales are still 30% below the units sold before the pandemic. “The current situation of registrations leads us to a market that will be closer to 800,000 than 900,000 units, far from what our country’s economy needs and what the industry needs, taking into account the investments made by both manufacturers and dealers to accelerate towards decarbonising mobility”, they indicate from Faconauto.
“While individuals are gradually starting to receive the deliveries they have been pending for more than six months, there are still not enough vehicles to meet the demand from car rental companies, which will weigh on this year, making it difficult for the third year is placed in a row in the vicinity of 850,000 units,” agreed Ganvam communications director, Tania Puche.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
