Domestic market improves, but pre-crisis level is still far

The improvement in the supply of credit has stimulated sales of motorcycles earlier this year. However, at the current pace, the production must still take at least ten years to return to the record levels of the sector, of more than 2 million units. " There is a greater availability of credit and demand grows gradually, the pace of labor market stability. Right now, the consumer opts for the purchase of vehicles, but other consumer goods do not have the same performance ", the Economist at Pezco, Yan Cattani. Data from the Brazilian Association of manufacturers of motorcycles, Mopeds, Scooters, Bicycles and similar (Abraciclo) show sales growth in the first quarter, both in retail (+ 17.9%), as (+ 15.7%) at wholesale. The production registered 6.6 percent advance in the period and the entity reviewed your high projection, in 2019, from 4.2% to 6.1%. The President of Abraciclo, Marcos Fermanian, assigns the advance the biggest offer of credit and improvement in consumer confidence "there is a positive bias, more based on expectation than a real evolution of the economy. Who takes credit has conviction that has a secure job, "said yesterday in a press conference. The Chairman recalled that, according to the latest report of the Central Bank, the credit balance to purchase of vehicles grew by 14.1% in the first quarter, to about R $347 million. "The default is low and the Consortium also evolved," says. Cattani points out that the increase in credit outlet is expressive, much due to the weak base. "There was a strong decrease during the crisis, because there was the expectation that the defaults could increase, but the opposite has occurred, people interrupted the demand," he explains. Fermanian believes that the option by the motorcycle also reflects a pent-up demand. "For much of the population of the country, is the only vehicle accessible by both the price and fuel economy. In smaller cities, where public transport is limited, is a required item. " The President of idleness Abraciclo estimates that at the current rate of growth, the only production will reach the total occupation of the industrial park in 10 years. "In 2018, we produce over 1 million units for the first time from 2015. We are in the recovery phase. Yet you can't say that the industry is in a healthy moment. " In the years 2008 and 2011, the production of motorcycles reached 2 million units. But after successive falls, reached 882,000 in 2017. "This shrinking demanded sacrifices and impacted the entire chain of suppliers and dealers. Fell more than expected, "explained Fermanian. However, he states that the current level of capacity utilization is relevant and the trend is growing. "Brazil is the sixth-largest market in the world. 1 million units per year is not a negligible number. The volume is increasing and, from now on, manufacturers will make investments, starting with new hires. "