Protests affect car sales in the country

The demonstrations held in several parts of the country in recent days begin to influence the market. Sales still outweigh the may results, with high of almost 4% but below expectations of manufacturers for the month of June.
"Particularly, I think sales could be better," said the President of the National Association of Automotive vehicle manufacturers (Anfavea), Luiz Moan. For him, the wave of protests "without doubt" have an impact on the automotive industry. "Of course there is difficulty in accessing the consumer network of resellers and with it there is some loss of sales."
Another Executive of a big automaker claims that the demonstrations generate uncertainty in the marketplace and reduce consumer confidence, which can delay the purchase. "Who needs the car will buy, but who thought of changing the current on the other newest or acquire a second car for the family can expect," said the Executive who asked not to be named.
Moan says, however, that the production of vehicles should not be affected, because any delays can be compensated with daily and work overtime on Saturdays.
Sales this month, including trucks and buses, totaling 266 thousand vehicles until Tuesday, 25, number 3.9% higher than the same period in May. Only in cars and light commercial growth is 4.1%. Compared to June last year, there were 13.9% drop in the total number of licenses in the period. The average daily sales in the month, 15,704 units, is also 3.9% above the last month's number.
According to LCA consulting, since the day 17, when the protests intensified throughout the country, there was a 12% drop in average daily plates issued compared to the period between 3 and 14 days. "Probably the fall is a reflection of the demonstrations, which have reduced consumer confidence and had the direct effects, such as the closure of shops and Government offices", explains Rodrigo Nishida, Chief Economist of the LCA.
Deceleration
The President of Anfavea assesses that the current moment will be overcome and maintains projection made earlier this year, an increase of 3.5% to 4.5% in vehicle sales in 2013 in comparison to 2012, for a total of 3.97 million units. He admits, however, that there will be a slowdown in the pace of growth of the market from this month.
The first five months of 2012 were weak in sales, but the numbers began to improve starting in June, after the Government cut the tax on industrialized products (IPI). "The basis of comparison will be stronger now," said Moan.
From January to may, sales grew by 8.6% as compared to the same period in 2012. With the partial numbers this month, the high dropped to 6.8%, accumulated with 1.747 million units.
Only in cars and light commercials were licensed 1.653 million units, 7.3% more than in the previous year. The auto industry accounts for 23% of gross domestic product (GDP), by 5% of the total GDP and 13% of Brazilian tax revenue underscores Moan.