For more than a decade, the auto industry didn't live a year so thin. After a significant annual growth cycle since mid-2004, the sector now finds himself faced with a challenging scenario, mainly due to the significant increase of the installed capacity. The own automakers already have questioned whether the Brazilian demand will be sustainable and will justify the investments made in the country.
"In recent years, the Brazilian automotive market remained virtually shielded any crisis. But this cycle reached the limit, "says the CEO of Chery of Brazil, Luis Curi, in an interview with DCI. According to the Executive, the word that defines this market today, in the country, is competition. "In addition to the companies have to deal with the fall in sales, we have to face the significant increase of competition," says Curi.
U.s.-based Ford also sees the growth of internal competition-in the form of investments both new entrants as of automakers already installed in Brazil-as a challenge to the national market must win.
"One of our major concerns is the increase of the installed capacity in the country," said on Thursday (12) Vice President of Corporate Affairs and government relations for Ford South America, Rogelio Golfarb. The Executive estimates that sales growth should be "modest" in the coming years, which could harm production. "If the pace continue like today, we can have up to 40% of idleness in mid-2017," he says.
According to the IHS consultancy, the average annual growth in the automotive industry in Brazil, between 2004 and 2013, was 10.5%. For the next few years, however, this situation must change. According to the CEO of Ford, the expansion of the national automotive market must be far more modest. "We are entering a new cycle," he says. Golfarb hopes for the country, in 2014, a breakthrough in sales between 1% and 2%.
Closing the year Chery's CEO States that 2013 was difficult not only for automakers with factories in the country, but to the new entrants, too. "It was a year of frights and adjustments. We all suffer, "laments Curi.
The leader of Ford highlights that the restriction to credit contributed greatly to the fall of domestic sales. "There is a clear trend of slowing sales and tightening credit have contributed to the painting," Golfarb emerges. He also States that Ford was cautious to adjust inventories and the company should close the year with "low growth". "We hope that 2014 will be better," adds the Executive. Golfarb estimates that Ford must close 2013 with about 9.5% market share.
Chery also aggravating in 2013, because it was the first six months of the year with sales compromised due to a delay in the transfer of your operations in the country representative for the automaker.
"If it wasn't for this delay, we would have reached our sales target" Curi. The company projected market in 2013, 20 thousand units. However, with the stoppage of business, sales reached only 10 thousand cars, which represents 0.5% of market share. The goal of the company is to reach 3% of share in the coming years.
For 2014, Chery should start to produce its first vehicles in the second half, in the plant that is being built in Jacareí (SP). "We've got 67% of the factory ready and the pace of the works is increasingly accelerated" Curi. Now, with the standardized operation and the prospect of the plant, the Chinese carmaker hopes to sell 30 thousand units next year.
"We are already prepared for 2014, which should be an atypical year, with elections and the World Cup", says the Executive. Including, Chery already evaluates the construction of a research and Development Center in the country, possibly in Jacareí, to support local production. Curi says, however, it's too early to talk about investments.
Chery recently announced a contribution of $ 138 million for the construction of a motor unit to supply the automaker's production in Brazil.
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