North and Northeast High will pull the sale of motorcycles in Brazil

After ending 2012 with indentation in the order of 15.62%, the motorcycle segment refers to the boom in sales of Northern and northeastern Regions, especially in inland areas, to resume a modest growth of the niche. The expectation of the National Federation of distribution of motor vehicles (Fenabrave) is to get high of 3.70%, in 2013. This lever spring projection, the business has proved to be a success in the locality, thanks to modernisation that there has arrived-at affordable prices through Consortium-in the form of motorcycles.
According to Fenabrave, 33 new dealers began to act in the northeastern region, in 2012. The same region, in 2012, had 450 segment points, up from the previous year's 417. In the North, the increase was seven new dealerships. It is recalled that the Harley-Davidson opened its first store in the Northeast at the end of last year, in the city of Fortaleza (CE).
Facing a highly specialized audience, the venture is one of the proofs that the local segment increasingly resembles, in terms of performance, to the South-East region.
"With the increase in income of the population, they began to replace the donkey by motorcycles," said Judy Massey, Managing Director of Ceplan consultancy and an economics professor at the Catholic University of Pernambuco, referring to the animal which until then was a common means of transport in the region.
Added to this the fact much of the local roads were in terrible conditions of use for cars, trucks and buses. The National Confederation of transport discloses in its official data that indicate the North and Northeast Regions with the highest percentage of roads in bad situations, regular and lousy. Highlighting the States of Maranhão and Amazonas.

The first is fueled by 41.1% of roads in regular operating conditions, and the second, by 47.1%. Making a counterpoint, the State of São Paulo, for example, holds only 10.8% of roads in the State. In addition to the structural insecurity in the region, the Consortium also contributes to the heating of the sector. It is worth remembering that the limitation of the claim, especially for this type of purchase, was one of the greatest responsible for registered in fall 2012.
For the Chief Executive of the Fenabrave, Alaric Assumpção, selling motorcycles is closely linked to the provision of credit. As this area is currently for a moment of decline nationally, Northern and northeastern operations if fit to the phenomenon in a way different from other regions. According to him, the consortium of there works with the issue of fellowship, that is, even though the buyer has not obtained financing in the Bank, the business owner will sell the bike for the confidence that this has on your consumer. "This raises very business and volume sales in the region. In the Southeast, for example, this would never happen, "said the Executive. In addition, he also highlighted regional differences between the commercial practices of the two extremes.

Owner of almost 80% of the Brazilian market, the Japanese motorcycle Honda also boasts the lead shot in less developed regions of Brazil, with the model Honda CG150. Last month, the brand sold 31,686 vehicles in the Northeast, which accounted for 87.9% of market share in the segment. The information is from Fenabrave.
Audience enrichment of the population, driven by macroeconomic policies, such as increasing the minimum wage and low unemployment rates and falling interest rates, have had an effect mainly on the poorest areas of Brazil, as indicate industry experts. The classes C, D and e were the most benefited by the movement of social inclusion, empreitado by the State over the past years.
And it is precisely those groups that predominate in numbers both in the North and Northeast as the target audience of the segment. According to the Brazilian Association of Manufacturers of Motorcycles, mopeds, Scooters, and Bicycles (Abraciclo), 85% of consumers of motorcycles belong to the class C (52%), D (14%) and and (19%).
However, the sector, which had never before seen results for about two years-making up the large cities to think in a reorganization of the local road system, suffered from the high percentage of the population's indebtedness, principal, factor that led banks to withhold credit.
Affecting the industry by surprise, the strict restriction on financing, primarily responsible for expanding the sale of motorcycles in previous years, caused a drastic drop in performance of the segment last year, difficult to be recovered in short period of time, according to industry analysts.