Anfavea: consumption of vehicles in Brazil could almost double by 2034

SAO PAULO-the Anfavea, an organization that represents automakers in Brazil, outlined on Tuesday a auto industry recovery scenario in 2015. The Association projected potential of the Brazilian market, one of the five largest in the world, achieving annual sales of 6.9 million vehicles in about 20 years — leaving the approximately 3.6 million units planned for 2014, between cars, trucks and buses.
The expectation is supported on factors such as the modest indexes of motorization of Brazil — "one of the lowest in the world," according to the Association--which indicates strong potential for growth in the consumption of automobiles, especially in the countryside. The prediction of Anfavea also has as a premise the back to an annual rate of growth close to 3% of sales of vehicles and is part of a study being prepared by the entity about which will be the size of the auto industry until 2034.
Presentation at the Congress promoted in São Paulo by Autodata, news agency specializing in the automotive sector, Luiz Moan, President of Anfavea, said automakers, keep my eye on that trend, programming investments of r $ 77 billion by 2018, with r $ 13 billion in engineering activities, research and development of new products. "Certainly, some $ 89 billion or $ 100 billion in investments will come until 2034," said the Executive.
Moan said that the vehicle market faced difficulties in the first half, but returned to spin in October to a daily rate of more than 13 thousand vehicles per working day, after staying below that level between July and September. Maintained the reaction shown in the second half, whose sales surpass 3.9% the average first half of 2014, Moan said that, of course, next year's sales tend to be better than this year.
The Executive expects, however, that sales of 2015 — even with the adjustments provided for in the economy, "regardless of the elected Government" — are higher than the average for the second half of this year, which leads him to bet on numbers "much better" than 2014 next year. On the other hand, he pondered what it takes be cautious with exports, given the restrictions on Argentina that came back to hurt shipments of automakers.
Moan also said that, despite the expectation of market reaction in the coming months, the automakers are still adjusting the production because they need adequate stocks. He said he hopes this year to approve the change of law which gives greater flexibility to banks on resumption of consumer goods in default. The measure, evaluate companies in the sector, would help improve financial institutions ' appetite for credit, to reduce automotive r costs and risks of this operation.