Popular abroad, expensive in Brazil

The Cruze can, without exaggeration, be considered a landmark in the recent history of General Motors (GM). After all, three years ago, the launch of this sedan has initiated an extensive renovation of portfolio held just after the group left a painful restructuring to cut costs and avoid bankruptcy amid the economic crisis that hit in full the American auto industry between 2008 and 2009.
As they used to say the automaker's executives at the time, was the emergence of a "new GM". In other words, a new chance to rebuild after the turbulence that, were it not for the heavy state loans, would have taken the largest American automaker to the canvas. Today, the Cruze is the second best selling car by GM in the United States. With more than 183 thousand units emplacadas until August-high of 18.2% in relation to the performance of a year ago, second only to the Silverado Pickup.
Also makes success in China, the largest automotive market in the world. There, the Cruze leads in the product range of the Chevrolet line. Just last month, were almost 21 thousand units, which puts volume as seventh best selling automobile in the Asian country when one considers only the car market of brands hatch and sedan.
As much in China as in the United States-the two largest automotive markets in the world-, the Cruze is therefore a popular car. But in Brazil, the fourth global market, doesn't quite represent 8% of everything that GM sells in the country. This is not an isolated situation because most cars sold in the world (see chart above) are generally expensive and little accessible in Brazil. The Hyundai Elantra, for example, is in third place this year in a global ranking made by Jet Dynamics consulting. In Brazil, however, accounts for only 2% of sales of Korean brand. The same happens with the Golf, the Volkswagen: 8th in the world, but in the 44th position in the Brazilian ranking of automobiles of the Fenabrave, the entity representing the dealers.
While the Brazilian market is dominated by small cars-as Gol, Uno and Palio-in developed countries, and even in China, there is strong demand for larger vehicles. In Brazil, nearly half of the sales are concentrated in input or small cars. The models that are successful here, for the most part, have regional activities and therefore do not stand out in global rankings, where there is a predominance of vehicles sold in various parts of the world. Already in the United States, 52 percent of the market is of average vehicles and SUVs.
Although there is a trend that goes in the opposite direction to those numbers-with the Brazilian consumption migrating to somewhat larger cars and the American, toward smaller vehicles, the difference in the profile of these markets can be explained, in part, by purchasing power. As the per-capita income in Brazil is less compared to more mature economies, automakers in Brazil devoted themselves mainly to cheaper cars – i.e. the compacts. Some of the higher ranges and models that are successful in other parts of the world, like the Elantra and the Passat (Volkswagen), not even then to be manufactured here.
But there is also an explanation attached to the disparity in the prices charged in Brazil with respect to the outside. Even being produced in São Caetano do Sul (SP), the Cruze, in the sedan version, costs in the Brazilian market the equivalent of $ 28.9 million. In the United States, has lower price: a little above $ 17,000. The model produced in Brazil is also about $ 10 k more expensive than in China. The Focus, global sales leader manufactured by Ford, part of $ 22.1 million in Brazil, almost $ 3,000 more than the minimum price in the American market.
Automakers attribute the price difference to the high cost of production in Brazil-between high-interest tax, heavy, increasingly labor guy, appreciation of the real in the last ten years and the inefficiencies in infrastructure that make it more expensive products. "The cost to transport a vehicle of Rio Grande do Sul to Manaus comes to equate more than 10% of the price of a popular car", says Luiz Moan, President of Anfavea, the entity representing vehicle manufacturers. Critics, however, add to these factors the trade protectionism-which takes the competitiveness of imported vehicles-and high available Brazilian consumers pay any price for a car.
"There is who buy a goal for $ 40,000. So, to lower the prices of this vehicle? "says Milad Kalume Naik, an analyst at Jet. So, he says, models sold in price bands in between European and American markets are overrated in Brazil. "There is, of course, the exchange rate factor to imported, the direct and indirect taxes, the poor logistics and precarious infrastructure, and there is also a high demand. The Brazilian purchase, "says the expert.