Venezuela’s car industry has reason to cheer these days.
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Car sales in the South American nation last year soared 70% to a record 228,378 units, as an economic upturn boosted demand in all segments, most notably for cars under the “Venezuela Movil” state-backed purchasing plan.
The hike was attributed to Venezuela’s growing economy (up 9.4% in 2005) and favourable macroeconomic indicators.
“We have an economic expansion and interest rates have fallen to under 20%, which is good in Venezuela,” Enrique Cardenas, executive president for manufacturer association Camara Automotriz Venezolana (Cavenez), said.
He added: “People are buying for themselves and as an investment. There’s so much demand for new cars that used cars are maintaining or improving their value.”
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By GlobalDataCardenas said 2005 was a break-through year after sales in recent years failed to crest the 2001 peak of 216,977 units.
If the economy continues to perform strongly, registrations could leap 10% to 250,000 units in 2006, he predicted.
Domestic sales, which make up for most of the market, rose to 139,000 units while exports increased 15% to 9,800 units, Cardenas said The Venezuela Movil scheme fuelled a 30% jump in passenger car sales, which make up for 80% of the industry’s overall turnover.
The socialist government’s programme enables the poor and middle-class majority to purchase a family vehicle tax free, for an average price of US$10,000, Cardenas added.
As in previous years, Chevrolet, Ford and Toyota led sales, with Chevrolet’s GM-Daewoo-sourced Aveo model topping the board and the company’s other key model, the also GM-Daewoo-sourced Optra sedan trailing closely behind.
Fiat and Renault, (which sell competitive low-price models outside Venezuela Movil) saw smaller increases, Cardenas noted.
The cargo vehicle segment saw the biggest sales gain, with a 25% increase, as a strengthening food and construction sectors bolstered demand for trucks and transport vans. The luxury vehicle sector made only poor gains, Cardenas said.
Venezuela produced 145,000 vehicles between January and November 2005, up from 102,000 units in the year-ago period.
Ivan Castano
