Luxury car market is stagnating in Brazil

Sales of the four manufacturers of luxury cars in Brazil were practically stable in 2018, with units marketed ante 38900 39000 a year earlier, a negative difference of 0.3%. The result contrasts to the total car market, which in the period grew 13%, to just over 2 million units. With that, the factories of Audi, BMW, Land Rover and Mercedes-Benz are still operating with idleness above 60%. Inaugurated between 2014 and 2016, all four of them are capable of producing 102,000 vehicles a year but never came close to that volume. Consumer insecurity over fear of unemployment and high prices are singled out as responsible for the poor performance of the thread is almost always taken off the market. In the years of 2014 and 2015, when the total sales of cars plunged, the luxury segment grew approximately 20% of. Just like it took longer to get into the crisis, the premium market is also slower in recovery. The sales leader in the segment, the Mercedes-Benz, will launch 20 vehicles this year, including unpublished models and new versions with aesthetic changes and motorization. Last year the number of news was near 30. The company projected growth of 10 percent in sales this year, after registering a fall of 2.9% in 2018. "We've always believed in Brazil and we think the local market will resume growth, we just don't know exactly when," says Britta Seeger, Member of the Board of Daimler AG, which owns Mercedes-Benz. Two years ago, she is responsible for sales and marketing of the brand. Idleness Britta said Iracemápolis factory (SP), which today produces the C Class models and GLA, is flexible and can produce any model of the brand, depending on consumer demand. She didn't help, however, if there are any new project under study at the moment. The two models are responsible for 50% to 60% of the sales of the brand in the country-between 6000 and 7300 of 12100 units sold last year. As the company does not export, idleness at the factory is high compared with a production capacity of 20000 cars per year. Mercedes ' sales were 2.7% below the volume of 2017. BMW sold 11,375 vehicles, up 11.9% compared to last year. Audi – that completes the trio of German automakers – recorded 12.4% drop in sales, to 8,677 units. Already the Land Rover grew 4.3%, totaling 6,574 units. Adding up all the luxury brands that operate in the country, enters which Volvo, Jaguar and Ferrari superluxuosa, total segment sales add up to little more than 40000 units. Transformation In visit to Brazil on Friday, Britta reported that, overall, the Mercedes-Benz is focusing its developments in connectivity, electrification, sharing and autonomy to accompany "the greatest transformation in history" that will occur in the sector over the next few years. The competitors follow the same path.