Popular car: sales of new vehicles fall 30% – 05/31/2023 – Market

The sale of new vehicles fell by around 30% in the period from May 25 to 30, compared to the same period in April, show market data obtained by Sheet.

From April 25th to 30th, 47,815 vehicles were licensed in the country. Most were passenger cars, but the account also includes other categories, such as trucks and buses. From May 25 to 30, the total was 33,417, which represents 30.1% less.

On May 25, last Thursday, the government announced a plan to reduce the price of popular new cars through tax cuts.

Reductions in final vehicle prices will range from 1.5% to 10.96% —discounts will be greater for cheaper cars. In addition to price, two other factors will be taken into account to determine the size of the discount: energy efficiency and national production.

However, the government has not yet detailed how the discounts will work or the exact date they will come into effect. With this, analysts estimate that consumers are waiting for the arrival of discounts to close the purchase of new cars. On the date of the announcement, it was informed that the detailing of the measure would be done within 15 days.

“When there is any tax reduction announcement, people wait to see what will happen. With the definition, things should go back to normal. The situation is still a bit confused”, evaluates Joel Leite, director of the Autoinforme agency.

Leite explains that, traditionally, registrations in the second half of the month are usually larger than in the first. In May, the numbers were in the same range, on average over the month.

This occurs because it is common for car rental companies, which are large buyers, to close more deals in the last days of the month. The data does not distinguish between purchases by individuals and companies.

Some automakers have been promoting promotions to try to reduce inventory and move dealerships, but the main focus is on offering more attractive financing rates. The price reductions have not yet reached what is foreseen by the government.

Renault offers the Kwid Zen for BRL 66,490, a BRL 2,500 discount on the list price. The promotional plan has a down payment of 60.5% (BRL 40,226.45) and 48 installments of BRL 799. The rate is 0.99% per month —which results in annual interest of 12.55%.

There are, however, registration fees and contract registration, in addition to the IOF (Tax on Financial Operations). At the end of the contract, the consumer will have paid BRL 78,232.05.

At Citroën, the compact C3 is announced at the suggested price on the list (R$ 72,990), but with installments in 72 installments and a down payment of 40% (R$ 29,196). The installments are R$ 999, with a monthly rate of 1.19%. The total cost at the end of the installment plan, including fees, is BRL 101,124.

Fiat announces the compact Mobi for BRL 66,990, a BRL 2,000 discount on the list price. Peugeot has already launched a new version of the 208, called Like, which is sold for R$ 69,990.

At Chevrolet, the promotions that started right after the government’s announcement include a bonus of R$3,000 for the Onix LT, whose price was reduced from R$89,250 to R$86,250.