Dear Readers, Dear Readers,
At the end of the month of May, we bring news for the automotive sector.
The first point to celebrate is that sales of new vehicles (cars and light commercial vehicles) ended the month with almost 175,000 cars sold!
This represented a growth of 28% over the month of April, when we sold just over 136 thousand cars.
The “best of good” side of the story is that this is the fourth consecutive month of sales growth:
In other words, there was an increase of 39 thousand cars from one month to the next.
Keep that number in mind.
And what stood out this month?
The highlight of the month was the septuagenarian Volkswagen, which sold more than 24,000 cars. It recorded sales growth of 156% over April, when it sold less than 9,500 cars, making that month the brand’s worst result (in market share) in its history!
On top of that, almost everyone registered growth and did well in May.
In order, we have: Citroën – 142%; Peugeot – 88%; Nissan – 82%; Mitsubishi – 64%; Hyundai – 37%; GM – 19%; BMW – 17%; Fiat – 13%, and so on…
Within the volume brands, only Renault registered a 9% retraction.
And then, the rest is all fancy: the Fiat “pato” Strada was and continues to be the best-selling car in the Brazilian market; the Hyundai HB20 is the second best-selling car and leader in its category and a lot of blah, blah, blah…
Now, going into that part of the text with our “Rodriguean” vision of being (life as it is), let’s get to the details:
Despite the market showing some recovery this month, it continues to bleed! This was the best month of the year, but even so, lower than the result of May 2021.
This year, we have the sale of 683 thousand vehicles against 837 thousand over the period from January to May 2021. In other words, a drop of 18.4%.
This month only served to “cut down” the damage. But the fall is more than done, since the road to the end of this year will be long.
If we want to “even” this year’s result over last year’s, we would have to have an average sale of almost 185,000 vehicles per month, from now until the end of the year.
What will never happen!
But then you must ask me: “Hey intern…. May had almost 175,000 cars sold… will we not be able to reach the 185,000 you mentioned from now on?”
So… the highlight of this month was that the rental companies went shopping!
In our accounts, they won something close to 35,500 vehicles in the month of May.
Remember that the growth in sales from April to May was almost 39 thousand cars? So, in general terms, the rental companies were responsible for this scenario!
The great doubt of this vile intern is whether they went shopping due to their hunger/need or if they bought all these vehicles in the basin of souls!
When in doubt, we always go with the second option.
The central point is that rental companies accounted for more than 20% of new vehicle sales in the month of May. Will they continue at this pace until the end of the year or was it a seasonal purchase?
The market situation remains complicated. The used market has stalled. The banks (credit) decided not to play with play anymore, took their ball and went up to their apartments – and now they only play Fifa on their PS5.
Remember that we said that the growth in sales in the month of May was 28%? He was motivated by the direct sales that automakers made.
Direct sales grew by almost 50% over the month of April. This month’s data is highly inflated because of direct sales (aka “rental companies”).
Do you also remember that the great highlight of the month of May was Volkswagen, with growth of 156%? It wasn’t because of the “media campaigns” the brand ran. It happened due to the volume of sales made directly by the automaker.
In April, VW sold just over 1,300 cars directly. In May, it recorded a growth of “only” 875% in the direct sales modality, with more than 13 thousand vehicles sold. That is, 54% of sales were carried out this way.
Clarification: direct sale is every vehicle that has been marketed, where the CNPJ of the automaker appears in the field of the seller of the product on the invoice, not that of a dealership. The concessionaire “may” participate in the sale, when it sells to people such as: rural producer; people with physical disabilities; small-medium entrepreneurs; fleet owner; RENTALS, among others. In our survey (of the 35,500 vehicles for rental companies) we did not take into account direct sales to individuals; between others. Direct sales in the month of May totaled almost 82 thousand cars sold.
So, what do you think? If you have any questions, send me an email here.
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