Popular car segment fell by 13.7% in May – 06/01/2023 – Eduardo Sodré

The wait for the price reduction of new cars in Brazil affected the ranking of best sellers in May. The market remained heated in the first few weeks, but lost steam in the second half, when definitions about the return of popular cars began to take shape.

The month ended with 176,500 registrations, an increase of 9.8% compared to April, which had four business days less. The number is based on the Renavam (National Register of Motor Vehicles) and includes passenger cars, light commercial vehicles, buses and trucks.

The first days indicated a better result than that achieved in May 2022 (187,000 units sold), but the wait for the tax reduction announcement and the expectations that came soon after the government spoke frustrated the industry’s plans. In the end, there was a drop of 5.6%. When looking only at passenger cars, the decline is 8.6%.

Among the compact hatchbacks, the category in which the popular models fit, the retraction is generalized. Between April and May, the segment fell by 13.7%. 38,076 units were licensed last month, according to Jato. Losses are concentrated among lower value cars.

The Renault Kwid (R$ 68,990) saw its registrations shrink from 4,152 units to 2,722, a decrease of 34.4%. The Fiat Mobi, which is sold at the same price as its competitor, ended the last month with 4,196 licenses, compared to 4,686 in April (down 10.5%). They are the cheapest zero-kilometer cars in Brazil.

The worst sales days were concentrated at the end of the month. The drop in the period from May 25 to 30, when 33,417 units were sold, was around 30% compared to the same period in April.

The leadership remained with the Fiat Strada pickup, which had 9,716 units registered in May, according to Jato Dynamics.

The result shows an increase of 20.7% in comparison with April, influenced by direct sales to companies and Agrishow, a fair held at the beginning of last month. The event, which is the largest agribusiness event in the country, had a positive impact on the commercial vehicle market.

The Volkswagen Polo, which was the second best-selling model in the country and ranked first among hatches, had 7,636 registrations in May. It was one of the few to record high sales in its segment: growth of 25.9% over April.

Third place went to the Chevrolet Onix, which ended the month with 6,947 units licensed. In relation to April, there was a decrease of 5.8%.

Shopkeepers hope that the new prices will be defined by the end of next week, as the government has estimated that the new rules will take effect in 15 days. But the Corpus Christi holiday, next Thursday (8), may delay implementation.

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.

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