Short credit grows inventories of vehicles

The stock of new vehicles in Brazil reached in September the highest level of the year, after sales in the month have been underwhelming, given what the industry called greater selectivity of banks in granting credit.

According to the Association of automobile manufacturers, Anfavea, the stock of new vehicles in factories and utilities ended September in nearly 421 thousand units, the fourth consecutive month in which the volume awaiting buyer was above 400 thousand units.

The stock grew supported also in production record for September, 332 thousand vehicles, with the industry preparing for an acceleration of sales at the end of the year by export growth and the expectation of repetition of the phenomenon of anticipation of purchases.

The reduction in the discount of the tax on industrialized products (IPI) officially goes to the end of December, but analysts and industry observers are betting that the Government will renew the benefit at least until the beginning of the election year of 2014.

On the eve, the Finance Minister, Guido Mantega, said that the Investment support programme (PSI), an important booster of sales of trucks by offering reduced interest, will be extended from the end of the year to the end of 2014.

The Anfavea ensures that has discussed the renewal of the IPI discount as Government and the President of the entity, Luiz Moan, said on Friday that "all the signs that the Government has adopted point clearly exemption policy restrictions. Coma tale not possibility of renewal ".

According to him, the September sales were not as positive as we expected ". The licenses last month totaled 309.9 million units, up 7.6 percent on the weak September 2012, but fall 6% on August.

Still, the drop in Sales YTD was reduced from 1.2% to 0.3% from August to September and the Anfavea kept the growth forecast of 1% of licensing the 2% in 2013. The entity started the year predicting high of 3.5% to 4.5%.

Moan said that banks are more selective, keeping, rather than expand, the volume of consumer direct Credit (CDC) offered in the acquisition of new vehicles. "I need from CDC to grow the volume," he said.

While banks are more confident in the financing of new vehicles, the Anfavea expects to reach a deal with the Government until the end of the month to enable the resumption of leasing mode.

Moan has stated that the capital lease was responsible for 38% of sales of vehicles in 2008, but that today the participation has been reduced to less than 2%. The crash occurred in front of legal uncertainties that have made States like São Paulo charge of financial institutions, and not the drivers, fines and payment of back taxes.

"What we are seeking is that there is no such transfer," said Moan, estimating that the resumption of leasing may generate incremental sales for the industry, especially among legal entities.

If the instrument if enable, the expectation is that the big commercial banks to extend credit to vehicles via leasing, reducing lines of credit consumer direct, which charge higher interest rates for higher risk. This space would be partly borne by the banks ' own automakers.