October car sales boom doesn’t stop annual decline

The passenger car and SUV segment managed to improve in October with growth of 11.7% and 65,966 units sold

For the third consecutive month, the passenger car and SUV market posted sales growth of
an increase of 11.7% compared to the same month of October last year with a total of 65,966 units. However, despite this improvement, the month remains below pre-pandemic levels (October 2019), with a 29.8% decline, a month in which 93,954 units were sold.

The market is still suffering from the effects of the microchip crisis and the manufacturing rhythm problems caused by the shortage of these components. You also need to add
economic uncertainty this determines the purchase decision, partly because they are decisive factors in indicating that the cumulative figure for the year remains negative, with a decrease of 5.8% and 666,247 units in total.

As for the registrations per channel, they all get an increase. highlights
the increase in both the rental channel and the companies. In the tenth month, corporate sales managed to grow 22.1% to 29,598 units and 5,184 units were also sold to the car rental channel, representing a 39% increase. Private sales, for its part, increased slightly by 0.4%, with 31,184 new units registered.

With the current delay in the delivery of vehicles, almost six months, this month’s registrations largely correspond to the reservations made in the months of April and May, so that the coming months
you could notice the effect of the increase in CPI and the economic and semiconductor crisis, with a further slowdown in sales.

They have understood from the Anfac Manufacturers Association that “this is the third consecutive month in which sales have increased in a down market context and with
a very unfavorable socio-economic situation. The sector continues to suffer from the severe semiconductor crisis affecting manufacturing. While demand continues, manufacturers continue to try to minimize production rate issues caused by component shortages.”

As the war in Ukraine and geopolitical tensions in Asia continue, this organization does not foresee that the situation will improve until 2023, with the market
cwill miss about 820,000 registrations at best new passenger cars, more than 35,000 fewer cars than in 2021.

The Faconauto dealer association analyzes these numbers and notes that “the positive figure in October registrations is not representative as we are still talking about a market with very low numbers that we also
compared to an already bad year like 2021. The month has been saved by the increase in business and rental business, while the individual channel, attended by dealers, shows us again its most disturbing face and remains almost 40% below the sales it made before the pandemic« .

From the Ganvam Distributors Association, they explain that “an increasingly weak demand is evident due to”
an uncertain economic outlook, with increasingly expensive loans. This circumstance, in a market where 80% of vehicles are financed, prevents families from buying a car«.

In October there were a total of 10,404 light commercial vehicle registrations, a decrease of 0.5% compared to last year. For the accumulated of the year
97,163 registrations have been reachedwhich registers a decrease of 25.6% compared to the same period of the previous year.

By channel, only business-oriented registrations grew by 20.6%, while the self-employed and tenants channel declined by 13.3% and 51.5% respectively.

Industrial vehicle, bus, coach and minibus registrations maintained in October
the upward trend of recent months, with an increase of 8.4% and a total of 2,788 units sold. In the total for the year, there are a total of 20,957 units, which registers an increase of 11.5% in the first ten months. By vehicle type, with the exception of medium industrial vehicles from 6 to 16 tons and microbuses, they managed to increase their sales in all types.

Source: La Verdad

Ida

I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.